UK turns away from brokers

Legal & General

Legal & General

The Association of Mortgage Intermediaries and Legal and General have released a joint report that shows that UK mortgage customers are choosing not to use brokers any more.

Less than half, 44% to be exact, are now choosing to visit a broker when looking for a new mortgage, despite a huge percentage admitting they feel they may have problems securing a new mortgage.

Of the 11.3million mortgage borrowers in the UK 2million of those admitted that they were not confident that they would secure a remortgage if they applied.

With 3.4million mortgage customers planning to change mortgage in the next 12 months, over a third of those are worried they will not be granted a new mortgage because of their credit status at the moment.

Robert Sinclair, from the Association of Mortgage Intermediaries, said, “There is a discernible gulf between the needs of many borrowers and the reality of what is being offered by high-street lenders. Such is the dearth in appropriate products that more people need better advice and a wider choice and this represents a vast pool of potential business for brokers.

“Brokers need to educate the consumer and be more proactive if they are to turn this latent demand into new business. The mortgage market isn’t suddenly going to spring back to pre-down turn levels so it’s up to brokers to make the most of the opportunities out there.”

Ben Thompson from L&G Mortgage Club, added, “Many borrowers don’t realise that chasing the headline rates that high-street lenders advertise may lead them to making multiple attempts at securing a mortgage.

“At present, more than half of all borrowers say they would apply for a mortgage directly with a high street lender with the majority doing so purely because they have an existing relationship with one rather than because they knew they offered the most appropriate deals.

“It’s clear that borrowers would benefit from professional, impartial advice that will potentially open up a lot more financing options for them and brokers have a golden opportunity to tap into this part of the market.”

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