Many Buyers Have Never Used A Mortgage Broker
Given the cost of buying a home, and how important it is in your daily life, you would think people would seek help from experts in the field. There is a lot to be said for guidance and advice from trusted professionals, and if you are looking for assistance in arranging a mortgage, you would think most people would call on the services of a mortgage broker.
However, in a recent study, it appears as though 39% of homebuyers in the country have never used the services of a mortgage broker.
For house buyers aged 55 years old or older, the percentage of people who have never used a mortgage broker increases to 49%. This perhaps suggest there is a generational gap in the use of these professional services.
Younger buyers know the benefits of using a mortgage broker
This feeling is reinforced by the fact that 74% of people aged between 25 and 34 have admitted to using a broker for a property loan.
If the current and next wave of buyers recognise the importance of professional help and assistance, it should ensure that the benefits of using a mortgage broker are clear for people who research the subject.
Why should you use a mortgage broker?
Some of the leading benefits of using a mortgage broker to arrange a mortgage include:
- A mortgage broker is likely to have a better awareness of how the market is performing and what products are currently available, assisting a house buyer in finding the best deal for them
- You will receive bespoke information and advice tailored to your needs, helping you make a more intelligent decision when it comes to selecting a mortgage
- Many home buyers have found the use of a mortgage broker has saved them a considerable amount of money, sometimes in the tens of thousands
- Using a mortgage broker saves you time as you don’t need to research options yourself, and this time can be used on more pressing activities
- A lot of property buyers find using a mortgage broker lowers the level of stress associated with arranging a mortgage, which is always helpful
Gerard Boon, founder and partner at Boon Brokers, said: “There is still a lot of confusion around mortgage brokers and what they can do. A good broker with whole of market access can find the very best mortgage product out there for a client, saving them a small fortune. One common misconception, however, is that homeowners have to pay broker fees when applying for a home loan or remortgage.”
Gerard continued by saying; “Consumers shouldn’t assume that broker fees are the norm, as all mortgage brokers in the UK are paid a ‘procuration fee’ by the lender upon completion of a mortgage application. Paying a broker fee does not guarantee a better service – there is no correlation between quality of service and broker fee charged. The only purpose of the broker fee is to increase the firm’s profit margin.”
While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision