COVID Reshapes the Mortgage Customer Journey
05 Oct 2021
65% of recent mortgage journeys impacted by COVID
65% of consumers taking a mortgage customer journey between 2020/21 were impacted by COVID. For those buying in 2020, the key impact of COVID was to postpone a purchase, while for those buying in 2021 the main impact was to bring forward a purchase (no doubt influenced by the Stamp Duty holiday). Younger journey takers were the most impacted by COVID.
COVID has re-shaped the mortgage customer journey by:
- Altering the reliance on professional support
- Promoting a virtual journey
- Making the journey harder to navigate
- Encouraging customers to contact their providers
These and other findings about the nature, shape and types of journeys undertaken by mortgage customers are discussed in the IRN Research Report Mortgage Customer Journey 2021.
Other key findings from the Mortgage Customer Journey report
- As the customer journey moves forward from an initial search for mortgage deals to finally arranging the mortgage, so the consumer journey shifts from a virtual journey toward a real journey.
- Mortgages remain the prime source of finance for home purchases. However, comparing journey takers who purchased their homes between 2018 and 2021 and those buying before 2018, indicates that mortgages have declined in importance
- Overall, journey takers see the journey process as running smoothly. However, while most journey takers navigate their journeys without problems, younger journey takers run into more problems.
- Most customers (78%) have received some form of communication from their mortgage provider over the past year, although for many this is restricted to receiving the annual mortgage statement.
- One-third of mortgage customers initiated contact with their mortgage provider over the past year. Information gathering or information imparting was the prime reason for initiating contact, principally to find information about the current mortgage (e.g., to request a mortgage review and to find out how much is still owed).
- Around seven-in-ten mortgage customers are planning to undertake some form of adjustment to their mortgage position in the coming three years
The Mortgage Customer Journey Report
This report traces the ‘customer journey’ of consumers when taking out a mortgage. It considers the types of journeys undertaken and considers the pinch points along the process. It finally discusses what happens when the journey is over and the journey taker becomes a customer. The main focus is on mortgages for home purchase but it will in parts also consider other types of mortgage action. This is based on research with 928 individuals who currently own their own home and have a mortgage. The report (84pp) is available from IRN research priced at £1,700 (no VAT).
Recently Published Related Reports
Scheduled Reports in October/November 2021
First-Time Buyers Consumer Research Report 2021
Existing Mortgages Holders Consumer Research Report 2021