Masthaven’s new mortgage study - Game of Loans - highlights that half (50%) of UK homeowners surveyed are not confident that they could get a mortgage today. In light of the massive volume of fixed-rate mortgages due to mature this autumn (£35bn*), Masthaven is urging homeowners to review their mortgage situation, and take time to understand their options if they are currently on a fixed-rate deal.
Matt Andrews, Managing Director of Mortgages at Masthaven, said:
“If you have a fixed-rate mortgage, it’s vital to check when your current deal ends. Knowing the date means you can take control of the situation rather than letting it automatically roll over to a (potentially more expensive) Standard Variable Rate (SVR).
“We know from our Game of Loans research that many homeowners are unsure if lenders can help them - half (50%) of existing homeowners who we surveyed believe it’d be hard for them to get a mortgage today. This is understandable, given how many people also told us they think getting a mortgage is about ‘box ticking’ not the reality of someone’s situation - almost two in three (65%) people polled believes this to be the case.
“Given the forthcoming remortgage surge – a whopping £35bn – I’m concerned to hear so many homeowners are unconfident they could get a mortgage. I urge any who are unsure, or feel trapped in their mortgage, to contact an independent mortgage broker to discuss their situation – with no obligation. They’ll have access to a broad range of lenders who are often more flexible than conventional high-street banks.”
The Game of Loans study – comprising two surveys of over 2,000 UK adults, in January and July 2017 – also found a large majority of people (81%) believe lenders should make an effort to understand homebuyers’ individual circumstances. A view held strongly among people aged 55+ (88%), UK homeowners (84%) and parents (82%). While many (73%) respondents said they had never used a mortgage broker or adviser, over a quarter (27%) have. Among the latter group, almost one in five (19%) said it was because their circumstances were “complicated”.
Masthaven believes that, despite new mortgage regulations providing a more stable framework, some UK lenders have not adapted their approaches to cope with people’s evolving financial lives. The bank is urging lenders to look closer at individual borrowers’ lives, so they can create products and processes that are fit for modern life.
Game of Loans report
Notes to Editors
- Game of Loans brings together evidence from a range of studies and reports to provide a glimpse of how aspects of life in the UK have changed recently, including the way people work, how technology is used, and family life. It serves to highlight notable societal shifts that have affected the mortgage market, with a focus on mainstream groups of society, with ordinary financial needs. It examines four audiences segments: self-employed, older borrowers, parents, and younger borrowers.
- Methodology: Opinium Research asked UK adults about their experiences of the mortgage market. It surveyed 2,003 people in January 2017 then repeated the survey among 2,008 people in July 2017. The first survey asked people about using mortgage brokers. Opinium is a member of the Market Research Society, ESOMAR and the British Polling Council. Alongside how difficult they felt it would be to get a mortgage, it also asked people their views on other topics, including: the mortgage process, the UK housing shortage, intergenerational disparity, and lending into retirement.
- ONS estimates the UK housing market currently comprises 28.1m residential properties (ONS: UK Perspectives 2016: Housing and home ownership in the UK: https://goo.gl/NpxqfR. ONS estimates the UK adult population is currently 51,767,000 (ONS: Population Estimates for UK, mid-2016: https://goo.gl/Teoh4o)
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