Four out of five people are dissatisfied with the choice and range of mortgages on offer, and believe they are not enough to meet their needs.
The finding comes from a study by shared equity mortgage provide Castle Trust, and the research was conducted just before Help to Buy’s own shared equity initiative was announced.
The survey found that around 80% of existing mortgage holders would like to see their lender introducing more creative solutions to mortgage finance.
The findings reveal that two-thirds (66%) of people think the mortgage products on offer, while plentiful, lack variation, and four out of five (79%) people would like to see increased innovation.
Around 37% of home owners would welcome the opportunity to reduce their monthly mortgage commitments through equity loans, the research shows. A further 53% of mortgage holders also say they would consider it ‘uncompetitive behaviour’ if traditional lenders chose not to offer equity loans.
Sean Oldfield, chief executive officer of Castle Trust, said: “The combination of demand from consumers and the introduction of Help to Buy has thrown the spotlight on equity loans.
“The need for creativity and innovation in the UK mortgage market is a real and growing issue, and both the Government and borrowers have made clear that they welcome equity loans as one solution.”
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