Let’s be honest, purchasing a property is one of, if not the, most expensive purchase you will ever make. But, according to new figures, countless Brits could have saved thousands of pounds in the process.
People Research Cars and Holiday Purchases More Than Mortgages
According to research by Noddle, 26% of borrowers do not shop around at all for a mortgage, with 23% accepting the first deal they’re offered and 36% admitting to very little knowledge of how mortgages work. In fact, respondents revealed that they spend longer researching car or holiday purchases than their mortgage options, and roughly the same time looking for an outfit for a special occasion.
A complementary study by Habito found that mortgage contracts are seen as complicated and are worded above the reading age of half of UK adults. It found that 58% of owners are turned off by reading these documents.
As a result of this lack of knowledge and investigation, many borrowers are paying more than they need to – especially as rates vary so greatly between lenders. 17% of respondents said that they’re now stuck with a financial contract they’re not happy with. At the time of their study, Noddle found that this could equal an extra £3,000 a year owed on a £200,000 two-year fixed mortgage.
“The excitement of finding a house you’ve fallen in love with, combined with worries about being accepted for a mortgage, means it can be easy to rush a decision about a mortgage,” Jacqueline Dewey, Managing Director at Noddle, said. “But when we’re talking about thousands of pounds on the line it really does pay to do your research.
“Rates vary across the market so don’t take the first deal available and try to speak to more than one lender. Understanding your credit score and getting it in good shape beforehand will also help you get the best rates.”
Don’t Rush into a Decision – Use a Broker’s Help
With the news reporting that it is harder than ever to get onto the property ladder, it may be tempting to accept the first offer from a lender that approves you (especially if you fall outside ‘typical’ lender criteria). However, don’t act rash. Comparing mortgage deals could save you hundreds or even thousands of pounds, so it’s worth taking your time.
If you don’t have this time to look around and study the market yourself, our residential mortgage brokers can help. Our team know the industry like the back of their hand and have access to exclusive broker only deals, meaning they can do the hard work for you and present a number of competitive deals – saving you both time and money.
See how much money you could save and contact our friendly brokers today!