Mortgage rates: Can mortgage adviser help get top rate? Third of borrowers unaware of role | Personal Finance | Finance


According to research from Legal & General Mortgage Club, thousands of borrowers could be missing out on accessing a better deal, by not speaking to a mortgage adviser when looking for a mortgage. In a survey of 2,000 UK homeowners, nearly a third of participants (31 per cent) who went direct to a lender said that they didn’t understand how a mortgage adviser could help with their search. The research also demonstrated that more 69 per cent of borrowers who hadn’t sought advice from an adviser hadn’t remortgaged in the last five years. Nearly 74 per cent said that they had chosen not to change their mortgage because they felt that they had “a good deal”.

The analysis also highlighted that 60 per cent of people who didn’t seek advice for their last mortgage didn’t know that they were there to help the borrower, while 24 per cent thought that a mortgage adviser was there to support the lender.

Data from mortgage sourcing platform Twenty7Tec shows that almost 12,000 mortgages are available through mortgage advisers, based on figures from April 15, 2019.

Just over 2,000 mortgages are available directly to consumers from lenders.

The research from Legal & General also revealed that those who sought expertise from a mortgage adviser when searching for the best mortgage deal were more likely to have switched in the last five years.

This stands at 29 per cent of people who opted for a mortgage adviser, while it’s one in five – or 19 per cent – for those who went direct.

Statistics from Statistica highlight that the average rate on a two-year fixed term mortgage fell from 2.6 per cent in June 2014, to 1.48 per cent in June 2017.

According to Legal & General, this could suggest that these borrowers may have benefited from opportunities to pay less interest as rates on mortgages fell.

Kevin Roberts, Director, Legal & General Mortgage Club said: “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.”

He continued: “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.

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