A.E.M.A.

Irish consumers show 'startling lack of knowledge' about mortgages - survey

Less than 40% of respondents said they were unaware that the major banks were open for mortgage business

Irish consumers are not savvy about what it takes to secure a mortgage and don’t know exactly what they need to do to make themselves more attractive to lenders, according to the Association of Expert Mortgage Advisors (AEMA).

Research undertaken by AEMA highlights a “startling lack of knowledge” among Irish consumers, with almost half admitting they were not aware that their financial transactions — including credit card and loan payments — are recorded and make up their credit rating.

Additionally, only 39 per cent of Irish adults claim to know their credit history and only 20 per cent said they know how to access it.

Despite the uptick in property prices and increasing positive sentiment among consumers, awareness that banks are open for mortgage business remains low, AEMA said, with less than 40 per cent of respondents aware that the major Irish banks were open to providing mortgages.

Loyalty to current mortgage providers was low, with seven out of 10 saying they would switch to a better lender if a better deal could be offered.

Only 20 per cent said they would not be lured away by a better deal.

On the whole, consumers who already have mortgages are satisfied with their mortgage payment terms, with more than 50 per cent saying they were happy with their current deal and only 17 per cent expressing dissatisfaction.

Trevor Grant, chairman of the AEMA said: “The research tells us that consumers need help to become mortgage ready and that there is a lack of knowledge around what it takes to secure a mortgage."

“We believe this should be an eye opener for the industry and that it is the role of those in the mortgage industry to respond to this issue and work to educate consumers about their financial health.”