A new campaign is being launched today to tackle mortgage myths and highlight the importance of professional advice when it comes to taking out a home loan.
More stringent lending rules are making it tougher to get a mortgage, and yet new research shows that more than half - 55% - of consumers, including many landlords, may end up with the wrong loan, because they are unaware that a mortgage broker can offer a greater product choice than a bank or building society.
The study found that 19% of respondents thought that brokers and banks have access to the same products, when in fact using a broker can give you access to nearly 10 times as many products, according to Legal & General Mortgage Club, which has launched the campaign.
When asked whether they agreed with a series of statements about mortgage advice, one in seven - 14% - thought their bank or building society would be able to give them access to the same impartial advice as a mortgage broker.
The Legal & General Mortgage Club Mortgage Myths campaign aims to put the spotlight on misunderstandings like these, highlight the valuable role of independent advice from a mortgage broker and encourage consumers to speak to an adviser about their mortgage options.
Jeremy Duncombe, director, Legal & General Mortgage Club, said:“These findings show there are a number of misconceptions consumers hold around the role of a mortgage broker, particularly when it comes to understanding who the broker is there to support.
“As an industry, there clearly is a significant amount of work to be done to change these attitudes, educate consumers and promote the advantages of using a mortgage broker.
“Although some consumers appear to believe they have secured the best deal possible by going directly to their lender, without speaking to a broker they could be missing out on thousands of mortgage products that might be even better suited to their needs.
“Brokers can offer consumers exclusive rates to their benefit and provide them with access to specialist lenders if they haven’t been successful on the high street.
“Ultimately, we hope our campaign will encourage brokers and the wider industry to dispel the myths surrounding mortgages and encourage consumers to speak to a professional mortgage adviser, who can guide borrowers and provide best advice when making the biggest financial decision of their lives.”