According to the latest research from Standard Life Bank, almost two-thirds of mortgage hunters in the UK find the process of searching for a mortgage frustrating (65 per cent) and confusing (64 per cent).
The research, amongst people who have recently decided on a mortgage and those who are still looking, also found that when hunting for mortgages, people spend more time searching on the internet than speaking to their financial adviser, or looking at offers on the high street.
In total, first time buyers spent over 46 days deciding on a mortgage, while those who had recently remortgaged spent 27.1 days. Londoners take the most time deciding on their mortgage – a whopping 52.6 days.
Based on average earnings, this time equates to £4600 for first-time buyers and £2710 for those who are remortgaging. For Londoners, the time cost is a massive £5260.
The research found that mortgage searchers fall into four categories:
Mortgage Sleuths
Nearly one third (29 per cent) of mortgage seekers do "painstakingly thorough research" and "leave no stone unturned".
Mortgage Mensas
These are the 26 per cent of mortgage searchers who "know about financial products" and "know how to track down the best possible mortgage for me without too much effort".
Near Enough Is Good Enough
The second largest group, at 27 per cent, start researching "with good intentions, but I find it’s all so complex and time consuming, I’ll weigh up a few offers and take the first adequate mortgage that I find".
Mortgage Sloths
The fourth group of 18 per cent "take the easiest option".
Standard Life Bank has responded to the widespread confusion and frustration with the mortgage decision-making process by launching Freestyle+. The unique series of specially commissioned online movies, with content designed to explain the world of mortgages, makes it easier and less time consuming to find the right mortgage.
Accessible at www.freestylemortgages.com, over 25 movies are presented by a roving reporter and a studio anchor. Users can pause, stop or rewind the films, or select a new one at the touch of a button. Movie topics range from basics including "How much can I borrow?" to more in depth subjects such as "Offsetting vs Overpaying".
Andrew Boddie, Standard Life Bank head of marketing, said buying a house was the biggest purchase a person would make in their lifetime.
"We know the property buying process can often be daunting so we developed Freestyle+ to help guide people through what is the most important purchase they will ever make.
"Freestyle+ is like an arm around the shoulder. You can find out all there is to know about the mortgage process without feeling silly for not knowing the answers."
