Abstract
Overview
Introduction
Churn remains a crucial issue in the UK mortgage market, affecting lenders'
business in varying degrees. Understanding the behaviour of the remortgaging
customer and the factors influencing the customer buying decision is essential
for lenders to design successful acquisition and retention strategies.
Scope
- Uses Ipsos MORI data to understand the needs and requirements of mortgage
customers.
- Provides examples of lenders' acquisition and retention strategies.
Report Highlights
54.2 per cent of remortgagors having switched lender did so when coming off a
short-term fixed rate mortgage product or a discounted product.
Nearly a quarter of participants (24.6 per cent - up from 23.3 per cent in
2003) stated ' advice from professionals' among the factors which influenced
them in choosing their current mortgage product. This is understandable given
that the importance of the intermediary channel has increased significantly
over the years.
Given the utmost importance of interest rate, a number of mortgage lenders now
offer customers the possibility of lowering the interest rate on the chosen
mortgage product by paying higher fees up-front.
Reasons to Purchase
- Gain access to consumer data to understand the switching behaviour of
mortgage customers.
- Learn the importance of the various factors influencing the customer
buying decision.
- Learn what your competitors are doing to address customers' needs and
requirements and curb churn.
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