As a result of higher interest rates and lenders withdrawing products, half of UK mortgage customers (50%) are now more likely to turn to brokers for guidance in understanding which products are available, new research from Butterfield Mortgages has revealed.
The prime London mortgage provider commissioned an independent survey among 2,000 UK adults. Of those with a mortgage (667), less than half (44%) are satisfied with the level of support and communication they received from their mortgage provider regarding rising interest rate since the start of 2022.
Two thirds (66%) believe greater flexibility is needed from lenders in the current economic climate.
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%.
The research also revealed that, as a result of higher rates, 37% of mortgage customers 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.”
