18th June ‘08 - Few Shopping Around for Homeowner Loans
New research from Lloyds TSB has revealed a paradox in the financial habits of UK consumers. For while 80 percent of people will look for cut price deals on even the most meagrely-priced products, and 28% like to reuse teabags, relatively few look around for the best deal on significant things like homeowner loans and mortgages.
In a surprising contrast, 61 percent of consumers said they would visit a pound shop to find the cheapest possible product, yet only eight percent said they would scout the market for the best deal on things like car and secured homeowner loans.
The Lloyds TSB survey participants gave various reasons for their reluctance to shop around when making important financial decisions such as choosing a homeowner loan.
Some cited scepticism as a factor, saying that they believed shopping around was unlikely to provide them with a cheaper product.
Others said that looking around was too much trouble, clearly indicating that, for some, second-best is good enough.
However, a spokesperson from Lloyds TSB warned that by taking this approach, many UK consumers are losing out. She said, “By watching the pennies it’s easy to lose sight of the pounds.
“Being careful with your spending is wise but to really boost your bank balance you should take a long hard look at the financial products you have.”