Homeowners aged 25 to 34 are more keen to switch their mortgage deal in the next few months, according to new research from the Nottingham Building Society.
Brokers, polled by the society, said the highest number of homeowners considering a remortgage between March and August this year were younger.
Overall 16 per cent of homeowners have said they would look for a new mortgage product by the end of summer, broker said.
While more than half (58 per cent) of the polled brokers are expecting remortgaging activity to speed up in the next 12 months, a considerable proportion (41 per cent) have reported an increase in the number of customers giving up on remortgage and mortgage deals. The mortgage application process has become more complex and time consuming and this puts many people off, the Nothingham says.
Furthermore, more mature customers are not always able to get a new deal. The society’s study shows that a number of people aged over 40 have faced problems to remortgage.
Longer-term deals are likely to get more popular in the future, with 48 per cent of brokers projecting a rise in demand for five-year products and 40 per cent saying 10-year deals will be more sought for in the near future.
Ian Gibbons, the senior broking manager of Nottingham Mortgage Services, commented:
“Brokers believe remortgaging could be a major growth area in the coming year and that is reflected in the new deals being launched by lenders.
“However there remains an issue about customers giving up on applications because the process has changed since they last took out a home loan which underlines the need for the expert support provided by brokers and the whole of market service.”
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