Brokers cut out of remortgage business
Legal & General and the Association of Mortgage Intermediaries’ research found only 44% of the 11.3 million mortgage holders in the UK would visit a broker to remortgage despite two million of them not being confident they could secure another mortgage if they applied for one.
The report shows some 3.4 million borrowers plan to secure another mortgage in next 12 months and also that 1.1 million borrowers say they are worried their credit record will hinder any application.
One in four borrowers said they feel their income level is too low to get a mortgage and one in five believe they don’t have enough deposit.
Ben Thompson, managing director of L&G Mortgage Club, said: “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.”
Robert Sinclair, director of 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.”