72% of existing mortgage holders are planning a mortgage-related action in the next three years

04 Nov 2019

Most Existing Mortgage Holders Planning Future Action

Research from IRN’s Existing Mortgage Holders Report 2019 indicates that most existing mortgage holders (EMHs) are very likely to engage in some mortgage-related actions in the next three years. The most common action to be taken in the next three years is debt adjustment or restructuring, encompassing remortgaging and paying off all or part of the mortgage debt. Almost half of EMHs (46%) are planning some form of debt readjustment (i.e. remortgaging the current home – 24% – making a significant lump-sum mortgage repayment but still owing money -15% – and making a final monthly payment or making a lump sum payment to pay the mortgage off – 14%).  Just under one-third of EMHs are planning to move home and take out a new mortgage (22%) or port an existing mortgage (13%).

The likelihood of engaging in new mortgage activity is closely related to social grade, peaking among the AB social grade and being the lowest among the DE social grade.

After most have recently taken action

Most EMHs -78% – have been active in the mortgage market in recent years, indicating that they will be taking recent journey experiences with them when or if they re-enter the mortgage market in the future. Based on the last action taken, the most common actions are to have purchased a new home and remortgaged although 14% purchased a second home or a BTL property the last time they took out a mortgage.

Most Existing Mortgage Holders Want professional support

Most EMHs want some professional help when they undertake a mortgage action.  Professional help may ease the three main pinch points along the typical EMH’s mortgage customer journey. These occur at the Go/No Go Stage of the process (essentially being granted a mortgage and accepting its terms), the pre-purchase mortgage research stage and the legal stage (e.g. finding all the legal and financial information required to be granted a mortgage and complete a home purchase).

About the Existing Mortgage Holders report

The findings in this report are based on a survey developed by IRN Research, with the interviews conducted by MIS Group. Interviews were conducted among 1,109 individuals who current own their own homes and are paying for these with a mortgage. The research was conducted in September 2019.

This report aims to give clients a crucial insight into the current mindset of individuals who currently own a mortgage, some of whom may be planning to take out a new mortgage product over the coming three years. A key aspect of this report is to study how those planning a future mortgage application will approach their customer journey. It will also contrast and compare existing mortgage holders (EMHs) who are likely to take out a new mortgage in the future and those who will not, and it will identify potential opportunities for relevant providers to grow their business. The report will further explore what mortgages EMHs have and where they may seek advice.

This report is a sister publication to two other Orchard Consumer Research Reports, Improving the Mortgage Customer Journey and First Time Buyer Mortgages and two Market Data Reports, First Time Buyers’ Market and Existing Homeowner Mortgages Market.

The report (70pp, PDF), is available directly from IRN Research, priced at £1,700. UK sterling price is plus VAT, so the total price is £2,040.

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Related IRN Reports

First Time Buyer Mortgages Consumer Research Report 2019

Improving the Mortgage Customer Journey 2019

First Time Buyers Market Trend Report 2019

Mortgage Holders Market Trend Report 2019

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