Brand perception is more important than broker recommendations when people choose a mortgage, new research shows.
Although brokers remain the most popular place to go to for advice, borrowers are more influenced by the lender's brand reputation than a professional recommendation, according to a study by Wriglesworth Research, published today.
While 36% of borrowers said brand reputation was a deciding factor when choosing a mortgage, only 25% named a recommendation from a broker or adviser.
Branding is also considered more important than fitting a lender’s criteria (30%), the ease of the application process (28%), an existing relationship with the lender (18%) or a recommendation from a consumer website (15%).
The most important factor of all, unsurprisingly, was the rate of interest on the deal, named by 74% of people surveyed, followed by product fees at 46%.
Recommendation from a consumer website was way down the list at just 15%. The research also showed that young borrowers were more likely to use brokers and consumer websites.
John Wriglesworth, chief executive of The Wriglesworth Consultancy, said: “The respect of a lender’s brand is absolutely vital to shaping people’s choice of mortgage products.
“Rates, fees and offers will always be the first thing borrowers look at when taking out a mortgage, but beyond the numbers, it is clearly important for them to have confidence in their lender before entering into a relationship.
“Plenty of thought and focus will be needed on maintaining and growing relationships across a range of communication and distribution channels. The arrival of Help to Buy means that more eyes than ever are trained on the performance of the market, and any brand that can build credibility and trust can lead the way in consumers’ minds."
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