One in four people applying for a mortgage were stressed out by the process, with lack of communication and transparency the biggest bugbears, according to new research by Trussle.
The online mortgage broker’s poll of 2,000 mortgage borrowers in the UK found that 23% experienced stress during their most recent mortgage application, with poor communication and a lack of transparency from both brokers and lenders causing mortgage meltdowns. One in seven (14%) said they rarely understood where they were in the process, while 13% said advertising for deals was confusing.
Applicants were also stressed about the amount of time it takes to make phone calls during the application process, with 27% preferring to go online.
Trussle points out that a worrying consequence of mortgage stress is that existing homeowners shy away from remortgaging in the future. According to the recent Mortgage Market Review 2018, more than two million people remained on a high-interest standard variable rate deal for more than six months rather than switching. According to Trussle research, this would cost borrowers up to £1,621 over the six months.
Trussle’s research also shows that one in five (20%) borrowers go straight to their current provider to remortgage rather than shop around for a better deal.
Ishaan Malhi, chief executive of Trussle, says: “Buying and owning a home is a huge milestone, yet for so many becomes stressful, simply because our complex and disconnected mortgage system hasn’t adapted to today’s lifestyles. Everyone knows somebody who’s had a nightmare mortgage experience and it’s therefore unsurprising that so many people shy away from the process when it comes to switching.
“The good news is that things are improving, with technology playing a key role in this progress. People can now apply for mortgages digitally in the comfort of their own home and out of office hours. They can also have their mortgage constantly monitored by algorithms which tell them when to switch to a new deal and what the best available ones are. Hopefully this trend will help us continue to reduce the number of people suffering mortgage stress.”