The value of a mortgage broker

A recent article by Legal & General gives some insight into the use of Mortgage Brokers when obtaining a new mortgage:

WHAT IS THE VALUE OF A MORTGAGE BROKER?

Buying a home is one of the biggest purchases people will ever make and it’s not always an easy process. From surveys, stamp duty, and solicitors’ fees to the baffling number of products and different interest rates, there’s a lot to wade through. But this is where a goo Mortgage Broker comes in…
Our new ‘Value of a Mortgage Broker’ research reveals a quarter of respondents (25%) said they had used a broker because the mortgage market was complex and they needed guidance. In fact, 81% of homeowners thought the advice of a broker would be quite valuable or extremely valuable when securing a mortgage.

Mortgage brokers could be seen as being in a strong position as the research shows:

  • 71% OF HOMEOWNERS USED A BROKER IN THEIR MOST RECENT HOUSE PURCHASE
  • OF THESE, 82% SAID THEY WOULD USE A BROKER FOR THEIR NEXT MORTGAGE
  • 92% OF THOSE SURVEYED WHO HAD USED A BROKER WERE QUITE LIKELY OR VERY LIKELY TO RECOMMEND USING A BROKER TO THEIR FRIENDS WHEN GETTING A MORTGAGE

Education is key.

The research highlights the role a mortgage broker plays in helping people find the right mortgage for their individual needs, through invaluable information and support. However, for this success to continue, education is needed as people remain, in many cases, unaware about the work of Mortgage brokers and the benefits they could bring:

  • 55% DIDN’T KNOW A BROKER COULD OFFER THEM MORE PRODUCT CHOICE FOR MORTGAGES
  • 48% WHO DIDN’T USE A BROKER THOUGHT THEIR BANK OR BUILDING SOCIETY OFFERED THEM A GOOD DEAL
  • 23% THOUGHT MORTGAGE BROKERS WERE EXPENSIVE
  • 18% OF HOMEOWNERS WHO DIDN’T USE A BROKER DIDN’T SEE THE VALUE THEY WOULD ADD

It’s hard to tackle these myths, particularly as the market becomes more competitive.

Links to Legal & General’s ‘Value of a Brokerreport is linked here and their infographic which shows an insight into the role we play is below: