Brokers have held up the red card to research from Alliance & Leicester that claims Britons are more prone to stick to their lender rather than shop around for a better deal.A&L’s research shows that 85% of borrowers tend to stick to their financial providers, spurring the bank to make the analogy that borrowers are more likely to change their local pub than change their financial provider. By the same token, 85% tend to vary what they eat when they dine out and 74% sit in different areas when travelling to work on public transport. Stephen Leonard, director of mortgages at A&L, says: “Our research suggests that while people are adventurous in their day-to-day lives, it is interesting that this doesn’t follow through to their finances. This could mean they are losing out on the savings that could be made by shopping around for the best deals. “It’s a good idea for people to consider being more flexible by reviewing their finances regularly rather than getting stuck in a financial rut.” He adds: “It is important that consumers consider the advantages of flexible financial products as they could also be missing out on additional benefits such as payment holidays and overpayments on their mortgage which can greatly aid and enhance their financial planning.” The research also found that 27% like their payments to be fixed every month and 36% are not even aware that financial products can be flexible. But James Carter, independent financial adviser at Virtue Financial, says: “I am surprised at this research and am interested to find out the sample of people they surveyed. My clients are mainly young Londoners and pretty savvy when it comes to switching credit cards and remortgaging. “However, I’d say there is a generation gap as younger people are a lot more likely to switch than older people, who tend to be more conservative.” Jonathan Burridge, managing director at Quantum Mortgage Brokers, says: “Reluctance to change financial providers varies depending on the product. “For example, it’s extremely unlikely that most people will move their personal banking. However, the current mortgage market has grown largely because of people remortgaging to a new financial provider.”
Alliance & Leicester is launching a new range of mortgages.Its remortgage two-year tracker is set at the Bank of England base rate minus 0.01% for two years, then SVR, currently 6.59%Customers can borrow up to 95% of the property value and there is a 499 product fee.The early repayment fee is 3% of the loan […]
The reputation of sub-prime or non-conforming lending has come a long way in the past decade. As the market has matured, it has had an image overhaul any PR man would be proud of. It is now an important and flourishing part of the overall mortgage market.
It would be easy to write yet another article about debt, bankruptcy or health reform this week as we’ve recently seen the newspapers flooded with reports and studies on all these topics.
Assetz, property investment specialists has recruited Nick Booker as its business development manager, with the task of raising awareness of the Assetz property funds within IFA networks.Nick Booker has worked as a development consultant and property investment advisor, contributing at major industry and consumer events. In 2005 he chaired a series of debates on the […]
Jelf Employee Benefits has released a guide to help employers communicate the recent raft of pension legislation to staff. ‘Your Guide to Pension Freedom’ will help employers meet their duty of care in explaining the changes to employees and in turn will help employees take more control over their pensions and retirement decisions.
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