A majority 54% of UK homeowners would consider opting for a specialist lender in their mortgage search, even if they had not come across the provider before, new research by Butterfield Mortgages has suggested.
According to the findings, around a third (32%) of mortgage customers used a broker to find their current mortgage, making it the most common method of sourcing a loan.
Butterfield’s research, based on an independent survey among 690 UK mortgage customers, revealed that this method 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. Another 8% said they had used comparison websites.
“As the mortgage market continues to evolve, borrowers are increasingly looking beyond the regimented ‘tick-box’ centric methodology of many mainstream lenders,” commented Butterfield Mortgages CEO, Alpa Bhakta. “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.”
When it comes to intermediaries, 62% of mortgage customers indicated that they feel brokers can find products that would not otherwise be available to them. A further 60% believe that working with intermediaries makes the application process easier.
In terms of the key factors influencing a borrower’s choice of product, the “terms of the loan” and “any additional fees to be paid” emerged as the most prominent – with both cited by 85% of customers as being important considerations.
This was closely followed by the interest rates (84%), while the length of the fixed term and the ease of application were both selected as important by 80% of customers.
Bhakta added: “The research has also 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.”
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