Mortgage News
Execution-only warning: Only a third of borrowers read mortgage agreement – Trussle
Just one third of borrowers said they read their mortgage agreement before they signed it and only 24 per cent said understand the meaning of the term ‘remortgaging’.
A survey of 2,001 people carried out by adviser firm Trussle also found that 44 per cent of customers did not consider upfront fees when deciding on their next mortgage deal.
Speaking on Mortgage Solutions Television in association with NatWest, Dilpreet Bhagrath (pictured), customer experience manager at Trussle, said due to this the sector needed to be “very careful” with vulnerable customers and those with lower financial literacy when it came to execution-only products.
She said: “When you’re looking at this information in front of you, I think it’s very important that we are careful with execution-only because we don’t want customers to be getting into a deal which isn’t suitable for their circumstances and they may end up paying over the odds.
“When it’s a lot simpler to switch directly with your lender somebody may choose to stay with their lender even if it’s costing them a lot more money. We need to level the playing field before we let customers just go out there.”
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The panel:
Dilpreet Bhagrath, customer experience manager at Trussle
Luke Christodoulides, senior corporate account manager at NatWest
Ken Deegan, chief technical officer at Mortgage Brain