Mortgage providers push products
First time buyers targeted in new campaigns
10 February 2012 | Mortgages | Ruth Janssen
This month saw the recent update to our Mortgages Dashboard, revealing a number of interesting changes in the UK market.
Providers have been trying their best to attract first time buyers. Previously high deposit requirements were making it increasingly difficult for first time buyers to get on the property ladder. Consequently, several providers are currently offering beneficial rates, low deposits and fee free mortgages in an attempt to attract these types of customers However, existing mortgages customers have not been forgotten as providers are offering preferential rates when remortgaging.
Providers are not just campaigning online, but are exploiting other communication channels as well. For example, Santander are promoting their mortgage offerings within their new mobile application. The mortgage advertisement on the mobile app currently aims to simplify customers’ search to find a ‘great’ mortgage. More information is provided for moving, first time buyers and remortgaging. A phone number is displayed on each page, encouraging customers to call for more information.
Nationwide are attracting mortgages customers through their new TV advertisement. The advert focuses on first time buyers and aims to continue Nationwide’s ‘On Your Side’ campaign. This is the first time in five years that Nationwide has run a campaign on its mortgage offering. The advert aims to encourage first time buyers to get a first step onto the housing ladder, according to Nationwide’s marketing director.
In addition, HSBC are using a more old fashioned advertisement channel namely newspapers. Their newspaper advert aims to attract customers that are buying their first home. First time buyers are tempted with HSBC’s fee-free mortgages. HSBC are currently offering a 2 year discount rate mortgage special that is fee free and could supposedly be ideal for first time buyers with a 10% deposit.
With high unemployment, muted wages and overall weakened economic activity, the UK's mortgage providers are pulling out all the stops In order to make their products look as attractive as possible to the consumer.