Having the cheapest rates and a smooth mortgage process is “significantly” more important to borrowers than using a lender they are familiar with, research from MPowered Mortgages has revealed.
The research found that, in a survey of 704 brokers, 468 respondents said “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.
A further two said it was which deal had the best incentives.
MPowered CEO, Stuart Cheetham, said: “We understand that rates are always going to be a really big focus for consumers, particularly at this current moment in time."
However, Cheetham said it was “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,” he explained.
He was “surprised” by how relatively few brokers stated that going with a well-known lender was a priority.
Cheetham said it was a “real opportunity” for lenders outside the traditional “big six” to find solutions that work for borrowers at this time.
The research additionally pointed out this was not the first time this trend has been identified, with an Oliver Wyman report in 2018 coming to similar conclusions.
“Clearly a consumer's decision on which lender to choose will to a large extent be based on personal circumstances but it shows that customer service and identifying customers’ needs are first and foremost,” the firm said.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
