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 | |
| Interest rates | 74% |
| Product fees | 46% |
| Brand reputation | 36% |
| Lender criteria | 30% |
| Application process | 28% |
| Recommendation from an adviser/broker | 25% |
| Existing relationship with the lender | 18% |
| Recommendation from a consumer website | 15% |
| Recommendation from family or friends | 14% |
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 | |||||
| All | Men | Women | 18-39 | 40+ |
| Mortgage broker/adviser | 42% | 46% | 41% | 52% | 33% |
| Existing bank | 37% | 34% | 39% | 41% | 33% |
| Another bank or lender | 29% | 26% | 30% | 26% | 31% |
| Consumer websites | 18% | 17% | 19% | 27% | 9% |
| Family | 16% | 11% | 19% | 28% | 4% |
| Friends | 11% | 8% | 13% | 19% | 4% |
| National newspapers | 6% | 8% | 5% | 7% | 5% |
| Specialist magazines | 1% | 1% | 1% | 2% | 0% |
