Brokers used for convenience
The study focused on consumer retention and attrition for lenders in the current climate.
Over half of borrowers also said they used intermediaries to get impartial advice with seven in 10 remortgagers citing independent advice as the reason they used an intermediary.
Further reasons included anticipation from almost half of borrowers that they expected to have trouble securing a mortgage and others conducted their own preliminary research but approached an intermediary after finding the mortgage market too complicated.
The study said: “Overall, the evidence suggests that a focused retention strategy may be required when looking at clients who originally booked via an intermediary channel. This may differ from those who arranged their mortgage directly.
“In summary, this group is markedly less likely to be retained than those who book direct and are almost four times as likely to go back to an intermediary when they next need to remortgage.”
The study said that once a customer engages an IFA or broker, a wider range of products would be displayed to them. Customers would also have assistance in navigating the re-mortgaging process with an intermediary.
“Not only does the offer to remortgage need to be on the table before the intermediary is engaged but the clarity and ease of application will be crucial to this group,” it added.
“On the whole they are either daunted or confused by the mortgage process or considerably more time poor.”
The UK Mortgage Council Surveyed 2000 mortgage holders, and of these 102 were borrowers who were recently active (last 12 months) and used an intermediary.