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Property loans trusted by most

9 December 2004

Nine out of ten mortgage borrowers trust their lender and three-quarters are now shopping around for loans, according to a new poll.

Council of Mortgage Lenders has revealed that 90 per cent of new mortgage borrowers think their lender deals with them well.

Commenting on the research, Council of Mortgage Lenders head of external affairs Sue Anderson said: "A huge majority of recent borrowers believe their lender treats them openly, honestly and fairly.

"But we cannot be complacent about the findings - while the industry is broadly seen as responsible, there is a rump of consumers who perceive at least some lending as irresponsible."

The survey of 1,523 recent borrowers also found that nearly three quarters (73 per cent) thought it important to shop around for mortgages.

This is reflected in the fact that 23 per cent sought product information from four or more lenders, with 19 per cent getting information from three lenders and ten per cent from two.

A third of recent borrowers (33 per cent) also said that comparing different mortgage deals was straightforward, while 20 per cent said comparing deals was difficult because the information varied.

The research was undertaken before the introduction of the "key facts" illustration under the new FSA mortgage regime, which attempts to make the process clearer for potential borrowers.

The Council of Mortgage Lenders plans to repeat the research next year to determine whether the advent of mortgage regulation makes a difference to people's perceptions of the lending industry and to their confidence in their own financial capability.