Thousands of borrowers, including many buy-to-let landlords, could be missing out on a better mortgage deal by not speaking to an adviser, according to fresh research from Legal & General.
The study shows that 69% of consumers who went direct had not remortgaged in the last five years, with 74% staying put because they felt they had ‘a good deal’. But data reveals that advisers have access to six times more products compared to going straight via a lender.
The research also found that almost a third - 31% - did not understand how a mortgage adviser could help with their search.
The survey of over 2,000 UK homeowners revealed that borrowers who did not seek independent advice were more likely to stick with their current lender too, potentially missing out on better deals in the market
The findings also showed that more than two-thirds - 69% - of borrowers who went straight to a lender had not remortgaged in the last five years and nearly three-quarters - 74% - stayed put because they felt they had ‘a good deal’.
But without seeking mortgage advice, these individuals would have missed out on the thousands of extra mortgages deals that are only available through a mortgage adviser.
As many of you will undoubtedly know, borrowers going through a mortgage adviser have access to thousands more mortgages than those going direct to the lender, including specialist mortgages for the self-employed and later life lending solutions such as lifetime mortgages.
Data from mortgage sourcing platform Twenty7Tec shows that almost 12,000 mortgages are available through mortgage advisers, compared to just over 2,000 directly on offer from lenders to consumers.
Borrowers who used a mortgage adviser were also overwhelmingly in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using a mortgage adviser to family or friends.
Kevin Roberts, director, Legal & General Mortgage Club, commented: “Whether someone is taking out their very first mortgage or unlocking housing wealth in retirement, the value that mortgage advisers can bring to borrowers can make a huge difference when it comes to moving onto and up the property ladder. Yet, our research shows that potentially thousands of borrowers still don’t 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’re 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.”
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.