Consumers don’t realise brokers offer more products than lenders

Ryan Bembridge

November 7, 2017

Most (55%) consumers are unaware that brokers offer a greater selection of products than banks and building societies, Legal & General research has found.

L&G has launched a press campaign called Mortgage Myths – Value of a Mortgage Broker with the remit of promoting the value of intermediaries in the press.

Jeremy Duncombe (pictured), director of Legal & General Mortgage Club, said: “These findings show there are a number of misconceptions consumers hold around the role of a mortgage broker, particularly when it comes to understanding who the broker is there to support.

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“As an industry, there clearly is a significant amount of work to be done to change these attitudes, educate consumers and promote the advantages of using a mortgage broker.

“Although some consumers appear to believe they have secured the best deal possible by going directly to their lender, without speaking to a broker they could be missing out on thousands of mortgage products that might be even better suited to their needs.

“Brokers can offer consumers exclusive rates to their benefit and provide them with access to specialist lenders if they haven’t been successful on the high street.

“Ultimately, we hope our campaign will encourage brokers and the wider industry to dispel the myths surrounding mortgages and encourage consumers to speak to a professional mortgage adviser, who can guide borrowers and provide best advice when making the biggest financial decision of their lives.”

Less than half (45%) of consumers agreed with the statement ‘brokers will be able to look at more products than a bank or building society will’.

However just one in five (19%) agreed that ‘brokers and banks have access to the same mortgage products and deals’.

The data comprises of 1,000 consumers: 500 that bought a home in the last 12 months with a mortgage and 500 first-time buyers who plan to buy with a mortgage in the next six months.

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