The majority of home movers and first-time buyers would use a broker to secure their mortgage, according to Legal & General’s Mortgage Myths campaign.
The Legal & General Mortgage Club’s research found that four out of five UK homeowners (81%) who bought a property in the last 12 months would use a broker if they were securing their mortgage again.
Meanwhile, three-quarters (75%) of those intending to buy their first home with a mortgage in the next six months would be likely to seek the advice of a broker.
Consumers are also more likely to use a mortgage broker if they have specialist circumstances:
- 71% would be likely to seek advice from a broker if they had a poor credit rating
- 62% would turn to use a broker if they were self-employed or worked as a contractor
- 67% would speak to a broker about buy-to-let mortgages.
More than half (53%) of respondents who had made a recent home purchase said they used a mortgage broker because it gave them access to a wider range of mortgage deals. Consumers have access to 30,482 mortgages compared to only 3,408 products for those who go direct to a lender, according to mortgage sourcing firm Trigold.
A third (33%) of respondents said using a broker removed the hassle of filling out forms and applications, while 36% felt brokers provided them with reassurance of talking to someone.
Kevin Roberts, director of Legal & General Mortgage Club, commented: “These figures should come as a positive message for mortgage brokers across the UK, showing that there is clearly a recognition amongst consumers about the value of professional advice, whether they are an existing homeowner, a first-time buyer, a borrower with a complex income or a prospective landlord.
“However, while this is clearly positive news, there are still buyers out there that either remain unware of the role of a broker or who have misconceptions about the value they can provide. As an industry, we need to reach out to these consumers and use campaigns like Mortgage Myths to showcase the important role that brokers play in helping borrowers across the UK.”
Source: Mortgage Finance Gazette