Would you spend longer choosing a holiday than a mortgage?
Consumers spend five days searching for a holiday, six days picking the perfect car, but only half that time choosing a mortgage, according to Noddle.
The credit report provider found that we only spend an average 3.6 days researching mortgages.
In fact, Brits admitted to spending almost the same amount of time – three days – looking for an outfit to wear for a special occasion.
First time unlucky?
One in four homeowners (26%) said they selected the first available mortgage they came across, while a third (36%) admit they have little knowledge of how mortgages work.
This lack of knowledge has an unfortunate consequence, with nearly one in five (17%) saying they are now stuck in a financial contract they’re not happy with.
The difference in rates on two-year fixed deals offered by the main high street banks is huge, varying from 1.84% to 4.22% said Noddle. This equates to an extra £3,000 a year on a typical £200,000 mortgage, so getting the right deal first time is essential.
Credit score jitters
Nearly one in four mortgage holders (23%) said they took the first mortgage they were accepted for because they worried that applying for others might damage their score and jeopardise getting one altogether. This highlights that people need help to understand more about what mortgage deals they are likely to be accepted for before they apply and how their credit score may impact their options.
Jacqueline Dewey, managing director at Noddle.co.uk said: “The excitement of finding a house you’ve fallen in love with, combined with worries about being accepted for a mortgage, means it can be easy to rush a decision about a mortgage.
“But when we’re talking about thousands of pounds on the line it really does pay to do your research. Rates vary across the market so don’t take the first deal available and try to speak to more than one lender. Understanding your credit score and getting it in good shape beforehand will also help you get the best rates.”