Britons are apathetic when it comes to choosing a mortgage, a new set of findings has indicated.
Research carried out by moneysupermarket has revealed that more than two out of every five (43 per cent) homeowners do not research all the secured loan options available to them when they are looking to borrow money. The financial comparison website also claimed that only a fifth of consumers said they had compared several options and providers before taking out a loan, with 22 per cent reported to look for advice from a mortgage broker. Meanwhile, 29 per cent of respondents chose their current mortgage by sticking with their existing supplier.
Head of mortgages Louise Cuming said: "Brits should be concerned - with so many people choosing their mortgage without comparing the market it is inevitable that many will not be getting the best deals." She pointed to research from the firm which revealed that borrowers could be wasting thousands of pounds by failing to look past the headline rate advertised with secured loans.
The majority of those surveyed (82 per cent) judged a low interest rate to be a key factor when looking to take out a mortgage, with 41 per cent of homeowners claiming that low or no fees were one of their three main reasons for looking for a secured loan. Overall, flexibility was reported to be one of the most crucial aspects of a mortgage accounting for 45 per cent of respondents across all groups. However, this figure fell to 34 per cent of votes from the over 55s, before rising to 54 per cent for consumers aged 25 to 34.
Figures from moneysupermarket also indicated that younger property buyers are more likely to research the secured loan market than their older counterparts. Just over a quarter (26 per cent) of buyers aged 18 to 24 years old were reported to consider options from several suppliers before making a commitment, in comparison to 17 per cent of those in the 45 to 54 age bracket. Coincidentally, a third of over 45s remained with their existing supplier when choosing their current mortgage deal. However, this proportion fell to 19 per cent for borrowers aged 24 and under.
People in this age group also saw customer service as crucial with some 31 per cent including it in their top three criteria for choosing a mortgage. "Younger buyers - the future of their customer base - are more demanding with much higher expectations than previous generations," Ms Cuming added.
However, the One Specialist study carried out by BM Solutions last week has indicated that secured loan costs could be set rise. In a survey of 200 mortgage intermediaries, eight out of ten brokers claimed that the Bank of England's monetary policy committee (MPC) is set to increase the base rate to at least 5.75 per cent by the end of the year. Meanwhile, about a third of brokers believe that interest rates will be the at six per cent mark by 2008. Head of key accounts for BM Solutions Iain Williamson said: "Following the release of June's MPC minutes last week, there's a strong expectation that we'll see another rise in July."
Author Resource:-
Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and loans sourcing from all leading UK providers. Our Site: http://www.allaboutloans.co.uk/
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