Homeowners want more done for new lenders
The study found that homeowners believe new lenders such as Tesco, Virgin Money and M&S, as well as other new entrants, can help break the dominance of the big six lenders and provide more creative approaches to mortgage lending.
Two-thirds (67%) of mortgage holders said they believe new entrants will focus on customer needs with just 14% expecting the same from traditional lenders.
Sean Oldfield, chief executive officer at Castle Trust, said: “Increased competition in the mortgage market is clearly welcome and new lenders and building societies have a major role to play.
“The mortgage market needs greater innovation and a wider selection of products than those currently on offer.
“The legacy issues faced by many of the big six lenders have led borrowers to believe this innovation is more likely to come from new entrants but it is an issue that needs to be addressed by the entire mortgage market.”
The research also revealed that levels of trust are highest for building societies. More than half (51%) of people say they trust mutuals most to offer innovative mortgage solutions. This rises to 58% for those aged 45 and over.
The higher level of trust is translating into market share and building societies now account for 22% of the gross mortgage lending market, nearly double their pre-financial crisis level.
Mutuals are also dominating the mortgage best buy tables and currently offer 83% of the most competitive deals currently on the market.