Equifax research reveals differing attitudes between men and women when it comes to remortgaging
Recent reports suggest that interest rates could rise in July 2016*. With the currently highly competitive mortgage market meaning there are a range of deals on offer, many homeowners may therefore be thinking about remortgaging in the next few months. But the question is what sort of mortgage to opt for. According to research** from credit information provider, Equifax, it is women that see the value of the certainty of a fixed rate deal in the event of an interest rate rise.
53% of women responding to the research conducted earlier this year said they would move to a fixed rate mortgage, compared to 45% of men. For those choosing a variable rate, there were more men (10%) than women (6%).
“It seems, from our research, that women are more likely to play it safe, when it comes to the type of mortgage deal they would choose in the event of a rate rise”, explains Lisa Hardstaff, Credit Information Expert at Equifax.
“A fixed rate mortgage offers protection from future rises which seemed to appeal to over half of the women we surveyed. And with industry figures* showing that more than 90% of homebuyers and those re-mortgaging are buying fixed rate deals, it appears the women who responded to our survey are in good company.”
A key factor for those considering applying for a mortgage is to be ‘mortgage ready’ and prepared to show evidence of all income and expenditure, as well as being realistic about what size of mortgage is affordable. Lenders want to see that an applicant will be able to repay their mortgage, not just now but in the future when and if circumstances change.
Reviewing how repayments have been conducted with past and current agreements is one area mortgage providers will take into consideration. Lenders may view any missed payments as a sign that an individual is taking on too much debt.
“Interestingly, the women we recently surveyed were more concerned about the amount they could borrow at 74% compared to 66% of men”, added Lisa Hardstaff. “By looking at their finances before applying for a mortgage, consumers can give themselves the best chance of getting the deal they want.”
10% would re-mortgage to a new variable rate
45% would re-mortgage to a fixed rate
6% would re-mortgage to a new variable rate
53% would re-mortgage to a fixed rate
66% are concerned about the amount they could borrow
41% are concerned about the time it would take to complete the application
19% not concerned with affordability rules
74% are concerned about the amount they could borrow
38% are concerned about the time it would take to complete the application
16% not concerned with affordability rules
Equifax suggests that anyone applying for a mortgage or remortgaging, gets themselves ‘mortgage ready’ by collating all the information they might need. This includes getting a copy of their credit report.
The Equifax Credit Report is accessible for 30 days free simply by logging onto http://www.equifax.co.uk/Products/credit/credit-report.html. If customers do not cancel before the end of the 30 Day Free Trial, the service will continue at £9.95 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.
**Equifax Mortgage Market Review Survey – conducted March 2015 amongst Equifax Personal Solutions customers – 1540 respondents
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Headquartered in Atlanta, Equifax operates or has investments in 19 countries and is a member of Standard & Poor's (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. In 2013, Equifax was named a Bloomberg BusinessWeek Top 50 company, was #3 in Fortune's Most Admired list in its category, and was named to InfoWeek 500 as well as the FinTech 100. For more information, please visit www.equifax.com.
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