Richard Goedegebuur
24 February 2006

The feeling of security afforded by a fixed interest rate is the most popular feature for UK consumers when it comes to choosing a mortgage, a survey by checkmyfile.com has found.

The 2006 Mortgage Lender Survey found fixed interest rates, closely followed by the reputation of the lender as the top two attributes most likely to make Britons choose a mortgage product.

The survey also found that consumers generally regarded features such as higher lending multiples and the absence of higher lending charges - the fees charged by lenders when extending loans of more than 75 per cent of the value of the property - were amongst the least popular reasons for choosing a mortgage provider.

Barry Stamp, Joint Managing Director of checkmyfile.com, the UK's leading provider of online credit files to consumers, said: "Our survey suggests the average UK consumer tends to be much more cautious when choosing a mortgage, compared to choosing other forms of credit which tend to be crisis-led. Consumers look for some stability when it comes to what is likely to be their largest monthly outgoing. Despite the relatively stable interest rate environment we have enjoyed for some years, they are keen to protect themselves from interest rate shocks."

The motivation for choosing a mortgage was found to differ between the genders in two distinct ways.

Barry Stamp added: "The top priority for men, when it comes to choosing a mortgage, is a fixed interest rate. Women, on the other hand, look at the reputation of a lender as the most important factor in choosing a mortgage. Getting a quick decision is also a key factor for men. Women are far less concerned about how quickly their mortgage offer appears."

As consumers get older, the key factors in choosing a mortgage product also change.

"Consumers in their 20s tend to look for the security offered by fixed rate mortgages, the reputation of the lender and the level of fees charged. They are not so concerned about how quickly they get confirmation of their mortgage offer - probably as they have no prior experience to base an expectation of the time a mortgage application can take.

"Consumers in their 30s also look to fixing their interest rate, and are more likely to be an existing customer of the lender. They are, however, looking for a quick decision on their mortgage offer.

"When a consumer reaches their 50s, their priorities have changed significantly. The top priorities for this age group are to choose a mortgage that gives them the ability to vary repayments and they are keen to choose a lender with a strong reputation. A quick mortgage offer in writing is also a key priority," said Stamp.

With the reputation of mortgage lenders being the second most important factor for UK consumers in their choice of mortgage, the 2006 Mortgage Lender Survey asked respondents about the customer service levels of the top UK mortgage lenders.

60% of respondents to the survey rated the standard of customer service provided by mortgage lenders as 'excellent' or 'very good'. One in six consumers were dissatisfied with the standard of customer service received.

Northern Rock and Nationwide were rated by respondents as the best mortgage lenders for their high standards of customer service. At the other end of the scale, Halifax and Barclays were considered by respondents as providing their mortgage customers with the lowest standard of customer service, provided by a major lender.

The full results of the 2006 Mortgage Lender Survey can be viewed online on checkmyfile.com.

Editor's Note

Launched in 2000, checkmyfile.com is the UK's first Internet based credit reference agency, aimed firmly at serving consumers. checkmyfile.com is fully independent and was the first in the UK to provide consumers with online access to their credit files, to offer consumers the ability to check their own credit score for free and to give plain English explanations of how credit scoring works. With over 1.5m registered customers and visited by over 20,000 unique new visitors every day, checkmyfile.com is ranked within the World's top 50,000 websites.

The Mortgage Lender Survey was conducted by checkmyfile.com during January 2006. checkmyfile.com undertakes two consumer surveys annually, The Banking and Credit Card Survey in May, and the Mortgage Lender Survey in January.

For further press information please contact: checkmyfile on 01872 308 648 or email: press@checkmyfile.com

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