First off – what do mortgage brokers do? Well, they are specialist advisors whose job it is to search the mortgage market to find their customers the best deal.
Using a mortgage broker basically means you don’t have to do the legwork involved in finding the right mortgage. And there is a lot of legwork! And paperwork. Brokers search the market and compare all the different deals available, looking not only at interest rates but other charges like initial arrangement fees. Some will do the paperwork for you too.
Most experienced mortgage brokers will have developed relationships with lenders, which will ensure the application process is fast and smooth.
Research recently conducted by L&G shows that 31% of the 2,000 UK homeowners surveyed did not understand how a mortgage advisor could help them. It also revealed that 69% of borrowers who went straight to a lender had not remortgaged in the previous 5 years.
They said 60% of borrowers who did not seek advice when they last took out a mortgage did not know advisors were there to help, and 34% thought a mortgage advisor was there to support the lender.
Their figures show that 98% of borrowers who did use a mortgage broker said they found them valuable, and 95% would recommend using one to family or friends.
More data collected by fintech company Twenty7Tec shows there are almost 12,000 mortgages available through advisors, compared to only 2,000 if borrowers go directly to lenders.
L&G Mortgage Club Director, Kevin Roberts said this: “Our research shows that potentially thousands of borrowers still do not know how a mortgage adviser can help with their mortgage search and as a result, they could be missing out on a better deal. The figures speak for themselves. Those who used a mortgage adviser when they took out their last mortgage would overwhelmingly recommend their family and friends to seek independent, professional advice. They are also more likely to switch their mortgage product, and when they do, borrowers can have access to nearly six times the number of products available than if they went direct.”
Pretty convincing stuff!
If you’d like to know more or would like to find out if a remortgage could save you some money, then give us a call on 01279 792756 or check out our website https://www.hazelwoodfs.uk/ and see how we can help.