Consumer awareness of mortgage rates increasing – Fairstone

The chartered financial planning company found that borrowers are becoming more aware of how their current mortgage rates compared to industry-leading rates – and that age, education and employment were significant factors influencing awareness levels.

The online survey examined consumer attitudes to mortgage rates by asking borrowers their awareness of how their current rates compare to the best rates – and compared awareness rates to a survey conducted in 2010.

With awareness defined as being fully aware, or aware of but not in detail – the results found that 66% respondents in the 2017 survey were aware of how their current mortgage rate compared against the best rates in the market.

In comparison, the 2010 survey found that 39% of homeowners were cognisant of how their rates stacked up against market-leading rates.

The 2017 results also showed that 77% of 55-75 year olds said they were aware, compared to 62% of 35-44 year olds.

However, only 42% of 16-24 year olds were aware of mortgage comparisons.

Occupations

Moreover, respondents with a higher education qualification were more likely to have knowledge of how their rates compared against top market standards, with 71% of those with higher education qualifications having knowledge of the comparisons, against 43% of those who have had no formal qualification.

Furthermore, the survey showed how those with full time employment were more likely to have mortgage rate knowledge than those without: 68% of working respondents were aware, against 56% of those unemployed.

Compared to 2010, 50% of respondents in full time employment were aware, compared to 26% of those out of work.

Peter Savage, chartered financial planner at Fairstone commented: “It is positive and very encouraging to see the rise in market awareness, perhaps improved by greater use of online comparison tools and with interest driven by the strong residential property market of the past decade.

Savage continued: “Regardless of age or qualifications we would urge all those with mortgages or those seeking one, to get the help of an independent financial adviser or specialist mortgage broker who will be able to guide the decision-making process and ensure the best arrangement for their client.”

The 2017 research was carried out by Ipsos MORI on behalf of Fairstone, using sample of 2,200 adults aged 16-75 in Great Britain weighted to known population profiles.

The 2010 ICM Worker’s Life Planning Survey sampled 18+ adults in Great Britain through 2003 nationally representative interviews.

Source

http://www.mortgagesolutions.co.uk/news/2017/12/05/consumer-awareness-mortgage-rates-increasing-fairstone/