Two in five homeowners in the UK suffer from mortgage stress and 625,000 borrowers are feeling overwhelmed with paperwork and jargon, according to a new study.
20% of new borrowers said that there was too much paperwork involved when applying for a mortgage or remortgaging an existing property, while 15% said that the industry’s jargon is an obstacle.
When asked what could ease the strain and make the process easier, a large number of homeowners wanted mortgages to become more digital. Three quarters wanted more transparency and the ability to view their outstanding balances online. Meanwhile, 70% wanted the option of downloadable mortgage statements.
Many people find themselves being moved onto their lender’s standard variable rate (SVR) when their fixed rate period ends, with some homeowners blaming the amount of paperwork and difficulty accessing straightforward information regarding their outstanding debt.
The time it can take to access important mortgage product information can be costly to those looking to remortgage. For example, if a home owner requests an annual mortgage statement from their existing lender, this can take a number of weeks to obtain. In the time it takes to receive this information, send it to a new lender, and move to the new mortgage product, the homeowner may have been moved onto the SVR.
Ishaan Malhi, Trussle chief executive officer said: “I’ve experienced the frustration of struggling to secure a mortgage first hand. There’s too much jargon, too much complexity, and not enough transparency. Millions of people lose out not only financially, but emotionally as a result.
“I’d like to see modern brands working hard to reduce the friction and stress of their products and services.
“The mortgage sector has traditionally been one of the worst offenders, with 40% of borrowers finding the process stressful and a third sitting on the wrong mortgage.”
Thankfully, there are ways to reduce the amount of mortgage paperwork and stress, whether you’re already a homeowner or you’re applying for a mortgage for the first time. With the help of a mortgage broker, you can pass much of the workload onto someone who knows the mortgage market and application process like the back of their hand. To find out how we can help you, please get in touch with the team at TaylorMade.
