A significant number of borrowers have chosen to stay with their current lender despite knowing there are better deals elsewhere, according to new research from online mortgage marketplace SwitchUp.
The research found 23 per cent of borrowers have stuck with their bank despite knowing other lenders offer more attractive mortgage products.
Thirty eight per cent said they know they could do better but consider it too hard to change, 22 per cent cited avoiding hidden fees and charges as a key benefit to applying for a home loan online, with 14 per cent expressing their annoyance at having to pay additional fees and charges they were unaware of and 26 per cent saying they liked the fact they would not be sold to by mortgage advisors.
“Many consumers are just not aware of the fees and charges associated with their mortgage until it is too late to back out and we realise this can be very frustrating,” SwitchUp chief executive Jega Rajan said.
Yesterday’s interest rate cut will be welcome news for borrowers looking for lower rates, but Mr Rajan believes finding a cheaper rate is not the only factor to consider when choosing a lender.
“Comparing interest rates is critical but it’s only half the job,” Mr Rajan said.
“Consumers must compare the total cost of each loan they are eligible for and look for features they may want or need over the term of the loan.”