Consumers want mortgage innovation
The research revealed that two thirds (66%) of people think the mortgage products on offer, while plentiful, lack variation and around four out of five (79%) people would like to see increased innovation.
Its study, conducted before the Government launched its ‘Help to Buy’ equity loan programme, found around 80% of mortgage holders would like to see their lender introducing more creative solutions to mortgage finance.
Sean Oldfield, chief executive officer at Castle Trust, said: “There is strong demand and interest from borrowers in more creative solutions to housing market issues including the need for large deposits and the potential risks of homeownership.”
The study also found that 53% believe it will be “uncompetitive” if traditional mortgage lenders fail to offer equity loans alongside their current product range.
Oldfield 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.”
Castle Trust’s research found that around 37% of homeowners would welcome the opportunity to reduce their monthly mortgage commitments through equity loans.