Latest research from The Legal & General Mortgage Service (LGMS) reveals that one in five UK homeowners (22 per cent) spend a week or less looking into mortgage products before they make a decision to buy, with almost half of borrowers (49 per cent) spending a month or less on research. This is despite the fact that a mortgage is likely to be the largest financial commitment many people make in their lives.
The research was carried out in connection with the launch of the new Mortgage Service from Legal & General, which provides potential borrowers with access to whole of market mortgage advice through Legal & General’s network of mortgage advisers.
Offered by a FTSE 50 company, LGMS is an independent mortgage advice service, which builds on Legal & General’s already strong experience in the mortgage advice sector. Covering the whole of the UK, the service will differ from other large financial institutions in that it will offer independent advice on a large number of mortgage products and lenders, enabling consumers to find the product best suited to their individual needs.
LGMS wants to help borrowers better understand the options available to them when finding their next mortgage, and to ultimately save them time, money and hassle when making decisions on mortgage products.
Jonathan Barrett, Head of The Legal & General Mortgage Service, says: “Mortgage advisers work to remove the stress associated with researching and applying for a mortgage, and ensure that borrowers receive all the information and advice they need to help them make informed decisions. With the number of products currently available, the importance of getting independent mortgage advice cannot be underestimated. This is especially true given the current market conditions of reduced lending and more stringent criteria. Although strict lending criteria makes it more difficult for many borrowers to get a mortgage, it is important that buyers find a product which best suits their specific circumstance and don’t settle for second best.
“The results of the survey highlight a bemusing approach to how people select their next mortgage. A mortgage is likely to be the largest financial commitment many will make and yet one in five buyers are happy to spend less than a week considering it. The mortgage market can be extremely complicated, and a ‘one size fits all’ approach won’t be suitable for everyone. Providing access to a national advice service will allow borrowers to experience a better way of finding their next mortgage, and ensure their individual needs are properly met.”
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