Four out of ten UK home-owners who expect to change their mortgage in the next six months say they will be switching supplier, according to a survey carried out by Martin Hamblin GfK.
According to the survey, out of the 20% of British mortgage holders that are considering changing their mortgage, only 26% say they will stay with their current supplier, while 41% expect to use a new supplier, and 33% are not yet sure who their next financial provider will be.
The most common reason given for changing mortgage is to benefit from a lower interest rate (27%), while 20% are seeking more flexibility, and 17% now want a fixed or capped rate, perhaps to give them more security in the light of recent Bank of England interest rate rises.
Almost 20 million adults in the UK live in a property with a mortgage, which means there will undoubtedly be a significant effect felt from the expected interest rate rises in mid-2004.
Findings from the survey show that it is presently easier to get off the 'property ladder' than it is to get onto it. Nearly one-third of Britons own their own home outright (rising to 60% in the over-65 age group), while more than half of 16-29 year olds are living with friends or in rented accommodation.
However, more than 10% still want to purchase property during the coming six months. One-third of these are first time buyers, while 20% of them are people who have paid off their current property, and almost half still have a mortgage on their current property. This is in line with current reports that the number of first time buyers is declining.
"There is a lot of opportunity for lenders to build value back into the relationship they have with customers," said Monique Hellel, financial services research director for Martin Hamblin GfK. "There are many flexible mortgages available now that can help customers cut years off their loans, if only they were shown how."
'The Mortgage Market Survey' of 1,000 adults (aged 16+)was carried out in February 2004 using a Britbus consumer omnibus survey, and is nationally representative of the UK population.