Despite the internet 4 out of 5 (79%) of borrowers still prefer face-to-face interviews when setting...
Despite the internet 4 out of 5 (79%) of borrowers still prefer face-to-face interviews when setting up a mortgage, according to a new survey from the Council of Mortgage Lenders.
If the borrower is a first-time buyer, the chances that he or she will chose an interview in person increases to 83%, while only 1% of first-timers approached a lender using a computer.
The CML found that out of 1,067 mortgagees only 9 used a computer to approach a lender. Surprisingly, 2 people surveyed instilled their confidence in digital television.
The council has also found a change in the types of mortgages bought.
Information about problems involving endowment mortgages have been taken to heart, and the number of such products has fallen to 39% of all mortgages in 2002 compared to 57% in 2000.
Repayment mortgages have picked up the slack. For the first time in more than a decade repayment mortgages make up the majority of outstanding mortgages, or 58% in 2002 compared to 40% in 2000.
The proportion of borrowers with a flexible mortgage has grown to 20%, although just 4% of these borrowers have taken a payment holiday.
Borrowers are becoming more sophisticated, the CML says. Figures show that a growing number of them are changing lenders, renegotiating terms mortgage terms, or increasing sums borrowed without buying new properties.
About 60% of those questioned in the latest CML survey have taken out their current mortgage within the last 5 years.
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