Although mortgage brokers and consumer websites are increasingly informing people’s choice of mortgage products, brand reputations are more influential than professional recommendations according to a study by Wriglesworth Research.
Respecting or trusting their mortgage lender’s brand is more important to consumers than the recommendation of their adviser. Brand perception is a deciding factor for 36% of aspiring and current homeowners, compared with 25% who feel professional advice dictates their product choice.
Only interest rates (74%) and product fees (46%) emerge as bigger priorities among consumers than their mortgage lender’s reputation. Branding is considered more important than fitting a lender’s criteria (30%), the ease of the application process (28%), an existing relationship with the lender (18%) or a recommendation from a consumer website (15%).
|Most important factors when choosing a mortgage|
|Recommendation from an adviser/broker|
|Existing relationship with the lender|
|Recommendation from a consumer website|
|Recommendation from family or friends|
Notwithstanding the greater importance of lenders’ brand reputation, mortgage brokers are still the most common place to go for consumers who want to take out a mortgage. However, age and gender have a significant impact on the sources people include when gathering information to help their decision.
Male homeowners are more likely to use a broker (46% vs. 41% of women) and are more likely to see their recommendation as a crucial factor in the decision (28% vs. 24% of women). In contrast, women are more likely than men to speak to their existing bank (39% vs. 34% of men) and approach another bank or lender (30% vs. 26% of men).
Brokers are also increasingly popular with younger homeowners. Over half aged 18-39 used a broker for their most recent house purchase (52% vs. 33% aged 40+) and are also more likely to use consumer websites (27% vs. 9% aged 40+) and speak to their existing banks in the process (41% vs. 33% aged 40+).
Older homeowners aged 40+ are more likely to shop around in person and speak directly to a wider pool of lenders. Almost one in three (31%) approached a different bank or lender to the one which holds their current account, compared with 26% of 18-39s.
|Where people went to find out about mortgages when buying their home|
|Another bank or lender|