Mortgage factors most important to borrowers revealed – and it might worry Big Six banks | Personal Finance | Finance

Having the cheapest rates and a smooth process is more important to borrowers than using a lender that they are familiar with, new research shows.

In a survey of 704 brokers carried out by MPowered Mortgages, 468 brokers said that ‘finding the best rates’ was the most important thing to their clients, while a further 215 said their clients prioritised a quick and seamless process.

In contrast, three brokers said that choosing a lender they were familiar with was most important, while only two said it was which deal had the best incentives.

This is not the first time this trend has been identified – an Oliver Wyman report in 2018 came to similar conclusions.

Many lenders outside of the ‘Big Six’ have also been offering lower mortgage rates.

While average rates among the Big Six have been falling rapidly in recent months, various building societies have been launching some particularly competitive interest rates over the past year, occasionally providing the cheapest deals.

The Big Six lenders include Nationwide, Santander, HSBC, Barclays Bank, NatWest, and Lloyds Bank.

Stuart Cheetham, CEO at MPowered, commented: “We understand that rates are always going to be a really big focus for consumers, particularly at this current moment in time.

“However, it is really interesting to see the importance assigned by borrowers to a fast and frictionless mortgage process.

“In today’s digitally driven day and age, consumers have come to expect and demand fast decisions and slick seamless processes, and lenders need to keep up with demand and respond by providing consumers with the solutions and services they need.

“We were surprised how relatively few brokers stated that going with a well-known lender was a priority.”

Mr Cheetham added: “We see this as a real opportunity for lenders outside the traditional ‘big 6’ to find solutions that work for borrowers at this time.

“At MPowered, we will always be innovating using the power of technology to make the mortgage process as easy as possible for brokers and borrowers alike.”

As many as 1.5 million cheap fixed rate deals are expected to come to an end in 2024, leaving many homeowners concerned about what’s in store for the next deal.

Money Saving Expert founder recently shared three “rules” for homeowners set to be impacted during his Money Show on Tuesday evening.

These include using a mortgage calculator “now” to prepare; diarising six months before their current deal ends to look for a new deal; and investing any spare cash in high interest savings account to reduce the future mortgage. Read more about this here.


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