Study also reveals the most common methods of sourcing a loan
Over half (54%) of UK homeowners would consider a specialist lender for their next mortgage search, even if they had not come across the provider before, new research by Butterfield Mortgages has revealed.
“As the mortgage market continues to evolve, borrowers are increasingly looking beyond the regimented ‘tick-box’ centric methodology of many mainstream lenders,” Alpa Bhakta, chief executive at Butterfield Mortgages, said. “The research shows that most homebuyers would now consider specialist lenders, which might be able to deliver greater flexibility or products better suited to their needs.”
The independent survey among 690 UK mortgage customers showed 32% used a broker to find their current mortgage, making it the most common method of sourcing a loan.
This was followed by respondents relying on their existing bank (24%) or getting a new product from a previous mortgage provider (21%).
Search engines were used by 19% of people when looking for a mortgage, while 14% relied on word of mouth, and 8% used comparison websites.
When it comes to intermediaries, 62% of mortgage customers in the UK feel brokers can find products that would not otherwise be available to them. A further 60% believe working with intermediaries makes the application process easier.
As to the key factors influencing borrowers’ choice of product, terms of the loan and additional fees to be paid emerged as the most prominent – both were cited by 85% of customers as being important considerations.
The research also showed a growing appreciation for mortgage providers’ green credentials, with almost six in 10 (58%) considering the lender’s environmental and social policies to be important.
Butterfield’s study also uncovered a lack of satisfaction among homebuyers with the customer care they receive from current providers.
Almost seven in 10 (69%) believe lenders should offer more support around the mortgage or finance options available to borrowers, while 45% think their mortgage provider offers poor communication.
“The research has unveiled clear concerns among mortgage customers surrounding the levels of care they are receiving from their mortgage provider. With interest rates and inflation rising, lenders must take note – more support is needed to help customers navigate this testing economic climate,” Bhakta said.
