Lenders Not Safe As Houses

One in five British mortgage holders are considering changing their mortgage, and more are intending to change supplier than stay with their current lender, according to The Mortgage Market Survey by Martin Hamblin GfK.

Only 26% say they will stay with their current supplier, whereas 41% are looking to use a new supplier. The remaining 33% are not sure who their next provider will be. The most common reason given for changing mortgage is to benefit from a lower interest rate (27%). One in six (17%) are looking for a fixed or capped rate, perhaps to give them more security in the light of recent Bank of England interest rate rises. The main reasons are as follows:

The survey also provides a good general picture of home ownership in the UK. Almost 20million adults (42%) live in a property with a mortgage, but more than a quarter (28%) live in a home which is owned outright - rising to 6 in 10 amongst those aged 65+). More than half of 16-29 year olds are living with friends or in rented accommodation.

One in ten people are looking to purchase property in the next six months. One third of these people are first-time buyers (this proportion is thought to be falling), 20% of them are people who have paid off their current property and almost half of them have a mortgage on their current property.

According to Monique Hellel, Financial Services Research Director for Martin Hamblin GfK, lenders have the opportunity to 'build value back into the relationship they have with customers. There are many flexible mortgages available now that can help customers cut years off their loans, if only they were shown how'.

The research was carried out using Britbus, a consumer omnibus survey conducted over the telephone amongst 1,000 people aged 16+, in February 2004.

Martin Hamblin GfK's Web site is at www.martinhamblin-gfk.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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