One in 10 first-time buyers put off remortgaging
One in ten (9%) respondents to a survey by Trussle said they had been discouraged from switching mortgage by their experience of being a first-time buyer and as a result many are remaining on expensive standard variable rate loans.
For 13% the process was so painful it has discouraged them from moving home again altogether, while 5% said it was so bad they complained to their lender or broker.
In the study of 2,000 homeowners, roughly a quarter (23%) were forced to take time off work to make arrangements for their first mortgage.
Trussle noted that many reported the traditional mortgage application process to be opaque and time-consuming, with one in four (23%) borrowers adding they found the experience to be stressful.
And almost one in ten (8%) homeowners admitted they were reduced to tears while attempting to secure their first mortgage.
Trussle CEO and founder, Ishaan Malhi, said: “Buying a home is one of the biggest milestones in someone’s life and should be remembered with fondness, but for so many, it’s an ordeal they’d rather forget.
“A lot of it comes down to the stress and inconvenience of the mortgage application process. It’s therefore understandable that so many people are reluctant to think about their mortgage when the time comes to switch, but the sad result is that homeowners are collectively losing billions of pounds a year.”