According to a survey by Pepper Money, the results of which were exclusively shared with Mortgage Solutions, this was more pronounced among women, going up to 33% for them, but falling to 26% for men.
When asked how much they would be looking to borrow, 27% were looking to borrow £10,000-25,000, with 14% searching for £25,001-50,000 and 13% looking for £50,001-70,000.
Looking at the age demographic of those who felt their product choice was sparse, around 40% of 45-54-year-olds said they felt that while they had options, their choice was more restricted.
This was followed by those aged 35-44 years old, with the proportion coming to 35%, and then by those aged 18-24 years old at 31%.
The report noted that 64% of those surveyed felt they had multiple product options if they wanted to make a significant purchase, and only 4% said they had very few options available.
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Middle incomes feel lack of product choice most keenly
Income was also a factor, with those earning between £35,001 and £45,500 most likely to feel like their product choice was limited, at around 39%.
Approximately 35% of those earning £45,001-55,000 said their product choice was restricted, followed by 32% in the income bracket of £25,001-35,000.
However, at all income levels – from £15,000 or less to £75,000-plus – more than a quarter of those surveyed said they felt like they didn’t have enough product choice.
Taking on more debt sparks fears about missing financial goals
When asked if they felt that taking on more debt would prevent them from achieving their long-term financial goals, 59% said yes.
Within that, 21% said it had already set back financial goals and 37% feared that it would in the future.
Approximately 30% said taking on more debt wouldn’t be a barrier to achieving long-term financial goals. Only 11% said they were unsure.
‘Disappointing’ that many feel they don’t have second charge product choice
Ryan McGrath, sales director at Pepper Money, said: “It’s disappointing that some homeowners felt they didn’t have enough product choice, whether that’s due to limited availability or simply not being aware of all the options.
“Encouragingly, awareness of homeowner loans is growing. 2024 saw the highest lending levels since 2009, and 2025 is on track to exceed £2bn. The second charge market continues to evolve, with new products and criteria changes aimed at improving accessibility and awareness.
“Brokers play a crucial role here, helping customers navigate the full range of lending options available that they may not be fully aware of. To maintain momentum, the industry must keep innovating and educating, ensuring consumers feel confident and well-informed when looking to fund any significant purchase or consolidate debt.”
