A.E.M.A.

Public mortgage knowledge sadly lacking

The Irish public's knowledge of the mortgage market and the choices they have is surprisingly and worryingly weak, according to a new survey.

The Irish public's knowledge of the mortgage market and the choices they have is surprisingly and worryingly weak, according to a new survey. Almost half don't know financial transactions are recorded and affect credit rating and just 39pc know their credit history while just two in 10 know how to access it, according to the Association of Expert Mortgage Advisors (AEMA).

It found that seven out of ten claim they would switch mortgage provider if a better deal came along and two in ten would stay loyal to their provider if a better deal was on offer but less than 40pc of those surveyed believe the main banks are open for mortgage business.

The research conducted by AEMA in conjunction with Amarach Research found that, despite an uptick in property prices and an increase in positive sentiment among consumers, awareness that banks are open for mortgage business remains low with less than 40pc of those surveyed believing that the main banks in Ireland were open to providing mortgages. Interestingly, loyalty among customers to their mortgage providers also seems to be low and largely dependent on value, with seven out of ten surveyed saying they would switch provider if a better deal came along. Only 20pc said they would stay put, and not be lured away by a better value deal.

On the whole, consumers who have mortgages are satisfied with their mortgage payment terms with over half claiming to be happy, with only 17pc saying they are very dissatisfied. Almost half of those with mortgages claimed to have a good relationship with their bank.

"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," said Trevor Grant, Chairman of the AEMA.

"We are on the brink of major transformation of the Irish mortgage industry, and with a general improvement in sentiment, we feel now is the time for consumers to really look at their credit health and become more aware of ways to improve it, and by extension improve their chances of mortgage success," he added.

For more visit www.businessworld.ie