United Kingdom Existing Mortgage Holder Mortgages Consumer Research Report 2019

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Nov 13, 2019, 15:30 ET

DUBLIN, Nov. 13, 2019 /PRNewswire/ -- The "Existing Mortgage Holder Mortgages 2019: Consumer Research Report" report has been added to ResearchAndMarkets.com's offering.

Existing Mortgage Holders Report 2019 indicates that most existing mortgage holders (EMHs) are very likely to engage in some mortgage-related actions in the next three years.

The most common action to be taken in the next three years is debt adjustment or restructuring, encompassing remortgaging and paying off all or part of the mortgage debt. Almost half of EMHs (46%) are planning some form of debt readjustment (i.e. remortgaging the current home - 24% - making a significant lump-sum mortgage repayment but still owing money -15% - and making a final monthly payment or making a lump sum payment to pay the mortgage off - 14%). Just under one-third of EMHs are planning to move home and take out a new mortgage (22%) or port an existing mortgage (13%).

The likelihood of engaging in new mortgage activity is closely related to the social grade, peaking among the AB social grade and being the lowest among the DE social grade. Mature EMHs are the most focused on either undertaking no activity in the coming three years or taking actions to reduce and finally end their mortgage.

Clearly, their prime focus is reducing their mortgage debt, i.e. continue repayments as normal, pay off a lump sum or end the mortgage. It is mainly younger EMHs who intend to purchase a property. EMHs planning to remortgage tend to be typical of all EMHs in terms of age, income and other characteristics

Among some of the other findings from the report are:

Most EMHs -78% - have been active in the mortgage market in recent years, indicating that they will be taking recent journey experiences with them when or if they re-enter the mortgage market in the future. Based on the last action taken, the most common actions are to have purchased a new home and remortgaged although 14% purchased a second home or a BTL property the last time they took out a mortgage.
Most EMHs want some professional help when they undertake a mortgage action. Professional support, especially handing over all the arrangements to professionals, is of above-average popularity among EMHs who plan to remortgage soon. It is also of above-average popularity among EMHs who want to reduce debt in the coming three years.
There are three main pinch points along the typical EMH's mortgage customer journey. These occur at the Go/No Go Stage of the process (essentially being granted a mortgage and accepting its terms), the pre-purchase mortgage research stage and the legal stage (e.g. finding all the legal and financial information required to be granted a mortgage and complete a home purchase).
The most problem-free mortgage activity is to remortgage. Buying a property is more problematic than remortgaging, especially if buying a second home. EMHs who ported an existing mortgage also ran into more problems compared with those who took out a new mortgage to purchase a home, which may suggest that those who ported only did so after running into problems trying to arrange a new mortgage.

This report aims to give clients a crucial insight into the current mindset of individuals who currently own a mortgage, some of whom may be planning to take out a new mortgage product over the coming three years. A key aspect of this report is to study how those planning a future mortgage application will approach their customer journey. It will also contrast and compare existing mortgage holders (EMHs) who are likely to take out a new mortgage in the future and those who will not, and it will identify potential opportunities for relevant providers to grow their business. The report will further explore what mortgages EMHs have and where they may seek advice.

Key Topics Covered:

1. Executive Summary

Existing mortgage holders are very active
And will be active again in the near future
Meaning mortgage providers must be aware of who their customers are
Especially if they are affluent
The lifecycle of mortgage actions
Existing mortgage holders prefer professional help when they act
The five pinch points of the journey
Which pinch less tightly if you are remortgaging
And some problems may be self-inflicted
Can technology improve the customer journey?
New technology as a supplement to but not a replacement for bricks and mortar
It's less about the medium of communication and more about how you talk
Improving the product offer
Don't become reactive with longer-established customers
Because customers you don't talk to, won't talk back
E-comms the growth preference

2. Introduction

The six stages of the mortgage process
Methodology
Abbreviations

3. Background

Most EMHs have recent journey experience
Most EMHs will be putting their past experiences into action soon
More mature EMHs tend to remortgage or keep the status quo
Mature EMHs intend to either stay put or try to sever ties
Affluent EMHs the most likely to act
The lifecycle of mortgage actions
The financial health of EMHs
Most EMHs devote around 23% of their income to repayments

4. EMH Strategies: Getting Professional Help

Professional help especially wanted to reduce the debt burden
Mortgage brokers and financial advisors the main professionals trusted
Selecting a strategy and selecting a source of information are both parts of the same process

5. The Mortgage Customer Journey: The Pinch Points

EMHs are not novices but they can still hit roadblocks
Remortgaging is the most problem-free activity
Easy or hard, EMHs rate their providers highly
Front-end problems are delaying the process
Knowledge gaps

6. Making It Easier For EMHs

Over 27% of mortgage holders favour comparison sites for brokers
Around one-third of consumers, favour improved monitoring because it reduces communication strains
Some support for easing the documentation burden but some reluctance to accept digital solutions
Use technology but don't abandon bricks and mortar
Personalised communications can improve the customer journey

7. Improving The Product Offer

Fixed-term repayment mortgages appeal the most to those who will remortgage
If approaching debt adjusters put more weight on non-price factors
Age-related mortgage offers will be popular
Nationwide vulnerable to mortgage finishers and Halifax to remortgagers

8. Keeping Your Customers Engaged

Mortgage providers get less proactive as time passes
But things may have improved
Just under one-third of EMHs initiate contact with their provider
Mortgage customers happy with the contact they initiated
EMHs increasingly like e-communications but still use the good old telephone

Companies Mentioned

Al Rayan Bank
Aldermore Bank
Bank of Ireland
Bank of Scotland
Barclays
Britannia Building Society
Cheltenham & Gloucester
Clydesdale Bank
Co-operative Bank
Coventry Building Society
First Direct
Halifax
HSBC
Leeds Building Society
Lloyds
Metro Bank
Nationwide Building Society
NatWest
Nottingham Building Society
Post Office Mortgages
Principality Building Society
Royal Bank of Scotland
Santander
Tesco Bank
The Woolwich
TSB
Virgin Money
West Bromwich Building Society
Yorkshire Bank
Yorkshire Building Society

For more information about this report visit https://www.researchandmarkets.com/r/qupycu

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

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Research and Markets
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SOURCE Research and Markets