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.”
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
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
