'More Time Needed' In Researching Loan Options

Britons spend more time planning their holiday than researching their personal loan and mortgage choices, new research shows.

According to a study by the Motley Fool, this time of year causes thousands of people to "dream of escaping the cold weather". However, it claimed that by not putting as much time into looking into various financial products as they do with their vacation choices, many Britons could be placing themselves under monetary pressure. The firm pointed out that for the 1.4 million consumers whose mortgage is up for renewal in the coming 12 months, putting more emphasis on a holiday than securing a best-rate loan could be costing them "thousands of pounds a year".

The study showed that the typical Briton will take nine hours and 14 minutes selecting their break. However, for mortgages an average of five hours and eight minutes is spent, with four hours and four minutes recorded for utility bills. Meanwhile, just three hours and eight minutes are taken to get a personal loan, the lowest figure recorded across all monetary products.

Overall, more than a third (36 per cent) of Britons state that they will spend more than ten hours choosing their holiday. However, this proportion falls to 21 per cent for people choosing a mortgage. Meanwhile, just 11 per cent of consumers will take this amount of time when looking for either a credit card or personal loan.

Research from the financial services firm also revealed that some 41 per cent of Britons claim that they do not have enough time to search for the most competitive monetary deal. However, people from London appear to be particularly pressed as over half (51 per cent) claim that a lack of spare hours in their day prevents them from searching out good offers. Meanwhile, 55 per cent of women stated that they do not shop around as they find the range of products on offer to be too overwhelming; this compares to just 35 per cent of men. Just under a fifth (19 per cent) stated that they do not spend long shopping for monetary products such as personal loans and mortgages because they do not provide the same "buzz" that buying items such as gadgets, shoes and holidays produces.

Commenting on the figures, David Kuo, head of personal finance for the Motley Fool, said: "Who can blame people for wanting to spend more time planning their holiday than pouring over financial products? But while a good holiday will recharge your energy levels for a few weeks, healthy finances can boost your bank balance for a lifetime. By taking a bit more time considering such things as your mortgage, you could save up to 3,000 pounds in one year to pay for the dream vacation you've yearned for but never quite been able to afford."

Whether it is to finance home improvements or simply to help manage spending, taking the time to search for a cheap loan could be advisable. Comprehensively researching all the personal loan options available may also be helpful for people looking to fund the holiday of a lifetime. An earlier study by Sainsbury's Travel Insurance revealed some 12 million people are looking to book a break between Christmas and the end of next month. The research also showed that 14 per cent are set to spend more than 1,000 pounds per person on a holiday.

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