Despite it being life’s biggest purchase, we’re spending less time searching for mortgages (3.6 days) than we do looking for things like a new car (6 days) and a holiday (5 days) 1.
That’s what we’ve found through our latest research, which also highlighted that 1 in 4 mortgage holders didn’t shop around at all, which could mean we’re more likely to miss out on getting the mortgage that’s best for us.
What could we be missing out on?
Whilst not shopping around much, or taking what’s on offer from the first mortgage provider you speak to won’t necessarily mean you get a bad deal, you could be taking a chance. For example, rates on two-year fixed deals can vary from 1.84% to 4.22% (for those with a product fee of £995). And this equates to an additional £3,000 a year on a typical £200,000 mortgage (best rate vs. worst) 2.
A lack of knowledge about mortgages?
One in 3 of the people we spoke to said they knew little about mortgages, which suggests that it could be this lack of knowledge that’s the reason why many of us are reluctant to shop around. After all, if you’re not totally sure about the ins and outs and aren’t confident about how to compare mortgages, then it’s much easier to just go with the first one that’s found.
If you can relate to this you can find lots of educational content on our blog:
- Mortgage jargon-buster
- How to protect yourself when buying a house
- How do lenders decide who to offer a mortgage to?
- The truth about mortgages when you’re self employed
Credit scores and comparing mortgages
There also seems to be worries around credit scores as nearly 1 in 4 mortgage holders said they took the first mortgage they were accepted for because they thought that applying for others might damage their score and then jeopardise getting a mortgage altogether. However, if you’re able to understand your credit score and get it in good shape beforehand it can help you get better mortgage rates. You can find out more on improving your credit score here.
As a Noddle member you can also suss out what mortgages you may be eligible for, through our partnership with award winning mortgage broker Trussle. Find out how much you could borrow and then get access to mortgage brokers who’ll be able to recommend the best mortgage available based on your circumstances before you apply – all for free.3 Just head to the mortgage section once you’ve logged in or signed up to Noddle.
1 Noddle commissioned Opinium Research to interview 2,008 GB adults online from 4-8 May 2018. Results are weighted to be representative of the UK population.
Time spent ‘researching, shopping around and ultimately choosing’ the following: Car – 149 hours (6.2 days), Holiday – 123 hours (5.12 days), Mortgage – 87 hours (3.62 days), Outfit for special occasion – 69 hours (2.9 days). This is across all Britons, not just those not shopping around for a mortgage.
2 The range in these rates, 1.84% to 4.22%, was found looking at the following high street banks: Barclays, TSB, Lloyds, RBS, HBOS, Santander and HSBC. All rates collected correct as of 28 June 2018
3 Noddle (part of Callcredit Consumer Limited) is a Mortgage Broker and not a lender. Noddle introduces customers to Trussle, an online mortgage broker, and receives commission from Trussle, which helps Noddle stay free to use. Noddle will receive up to £30 + vat for each enquiry. In addition, if you apply for a mortgage, and complete through Trussle, not more than 0.33% of the mortgage will also be paid to Noddle. If you subsequently remortgage through Trussle not more than 0.4% of the mortgage will also be paid to Noddle.
Article Credit: noddle.co.uk