Savvy first time buyers exploit highly-competitive mortgage market
The first time buyers (FTB) market is characterised by borrowers who generally are informed in their choice of product and lender, are primarily focused on getting the best value over the long term, remain very satisfied with their product choice and are in control of their repayments. This is according to new research undertaken by Amárach among about 500 FTBs and published today by the Irish Banking Federation (IBF).
The following are among the key findings:
FTBs are clearly taking advantage of a very competitive mortgage market – three out of four shop around when looking for a mortgage
The key factor in selecting a lender is the interest rate – not, for example, the most money on offer; and the key factor in product selection is the best value provided over the full term – not, for example, the lowest cost in the early years
FTBs understand the mortgage application process and the mortgage product chosen; and nine out of ten of them remain satisfied with their mortgage product
They regard the property purchase as their ‘home’ for the medium/long term – with half of them planning to stay for six years or longer and one-third having no plans to move
FTBs are managing their mortgage repayments – 84% report no difficulty.
IBF’s Chief Executive, Pat Farrell, stated: “These results present a very positive picture of the FTB market, a key segment now accounting for some 22% by value of the total mortgage market. It is very reassuring that borrowers are exercising informed choice in what is a very competitive market and lenders are responding in a transparent and prudent way. And it is further reassuring to note that borrowers are in control of their repayments. IBF will continue to work with lenders to build further on this positive picture.”
Click here to view the research results.
Note to Journalists: Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Further Information: Felix O’Regan, Head of PR and Public Affairs, IBF, tel. 6715311, 087 6481644