Demo info defines mortgage industry
New studies suggest that home loan lenders rely heavily on demographics when deciding which mortgage product to offer.
The report indicates that lenders use demographical information to assess changing demands such as the recent affordability issues experienced by first time buyers.
Particular products are matched to certain consumers, in this example first time buyers are more likely to opt for fixed-rate loans as they offer repayment security. People who have experienced financial troubles will be offered plans bearing higher rates of interest to match their sub-prime status.
Strangely the report also suggests that few consumers are using the net as a way to research mortgages due to the scale of such a loan, although it is accepted that this is likely to change with more weight being placed on this particular medium.
Demographical matching is a tried and tested method for analysing many different market places. The financial service industry is ideally positioned to use this method, as a means to gage its industry’s climate and develop new products accordingly.
