IntroductionChurn remains a crucial issue in the UK mortgage market, affecting lenders' business in varying degrees.
Understanding the behavior of the remortgaging customer and the factors influencing the customer buying decision is essential for lenders to design successful acquisition and retention strategies.ScopeUses Ipsos MORI data to understand the needs and requirements of mortgage customers.Provides examples of lenders' acquisition and retention strategies.Highlights54.2 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 PurchaseGain access to consumer data to understand the switching behavior 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.