Two in five homeowners (41%) find the mortgage experience stressful, research from Trussle has revealed. Aside from the potential health risks, this mental strain could result in higher mortgage costs.
The main causes of stress, according to respondents, are an overabundance of paperwork, which 20% pointed at, and jargon, which 15% stated as their main issue. The former is hardly surprising, given that an average mortgage application for a home purchase can result in 219 sheets of paper. With 1.5 million new mortgage customers in 2017, this would have required around 38,600 trees to be felled.
To reduce stress levels (and tree felling), a lot of customers are asking for mortgages to become more digital. Specifically, 73% would like lenders to be legally required to make their outstanding balances accessible online, while 70% would like downloadable mortgage statements.
Without changes to make the mortgage process easier to get through, remortgagors in particular risk not only stress but also additional mortgage costs. That's because those that don't remortgage by the end of their fixed or discounted term will usually automatically revert to their lender's Standard Variable Rate. These rates tend to be quite a bit higher, which can see the average customer pay almost £400 more per month.
To avoid such increased mortgage costs, it's important to start looking for a new mortgage a few months before your current deal expires. With fixed rate mortgages still offering attractively low interest rates, remortgaging to such a deal may even lower your repayments.
Ishaan Malhi, CEO and founder of Trussle, said that "a third [are] sitting on the wrong mortgage, collectively spending £15bn a year too much on interest as a result. If service providers focus on making the overall user experience simpler, more intuitive and accessible, hurdles will be reduced and many people are going to save money in the process."
Whether you're looking for your first ever mortgage, or are simply remortgaging, it can be beneficial to look at the Best Buys and find the top mortgage deal for you. We can't tell you how easy or difficult the actual mortgage process will be, but at least with the help of an overview of the top rates you can get a great deal at the end of it.
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