New research from Butterfield Mortgages shows two-thirds of UK mortgage customers (66%) believe greater flexibility is needed from lenders in the current economic climate.
The prime London mortgage provider commissioned an independent survey among 2,000 UK adults. Of those with a mortgage (667), the study found that less than half (44%) are satisfied with the level of support and communication they received from their mortgage provider regarding rising interest rates since the start of 2022.
Butterfield Mortgages’ study comes after the Bank of England has continued its run of interest rate hikes, with the latest move pushing the base rate up to 5%.
When asked how their mortgage needs have been impacted, half of the mortgage customers (50%) said they are more likely to turn to mortgage brokers for guidance in understanding which mortgage products are available.
The research revealed a further 37% are more inclined to look beyond big banks and traditional high-street lenders for their mortgage needs over the next 12 months.
Alpa Bhakta, CEO of Butterfield Mortgages, said, “Over the past year, mortgage customers have had to grapple with a string of consecutive interest rate hikes, which is evidently creating challenges for many. Our timely research provides insight into how their mortgage needs have been impacted, with two-thirds of mortgage customers in need of greater flexibility from their lenders.
“With interest rates once again on the rise, it is increasingly important that mortgage customers feel supported by their lenders and that we, as an industry, are doing everything we can to provide the right levels of guidance, communication and flexibility amid the ongoing economic challenges.”
About the research
The market research was carried out between 9th and 14th June 2023 among 2,000 UK adults via an online survey by the independent market research agency Opinium. Opinium is a member of the Market Research Society (MRS) Company Partner Service, whose code of conduct and quality commitment it strictly adheres to.
Its MRS membership means that it adheres to strict guidelines regarding all phases of research, including research design and data collection; communicating with respondents; conducting fieldwork; analysis and reporting; data storage.
The data sample of 2,000 UK adults is fully nationally representative. This means the sample is weighted to ONS criteria so that the gender, age, social grade, region and city of the respondents correspond to the UK population as a whole. These questions focus on a collection of 667 UK adults who have a mortgage.
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