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Yorkshire BS: Majority of FTBs will use brokers when buying

Jake Carter

July 20, 2021

brokers

The majority (78%) of first-time buyers (FTBs) would be likely to use brokers to help them to arrange their first mortgage, while a further 13% have already done so, according to Yorkshire Building Society.

The main reason more than a third (36%) of FTBs suggested they would turn to brokers was to gain access to more of the market and better deals, closely followed by not feeling confident enough about the purchasing process to be able to do it alone (34%) and not knowing where to search to find a good deal (28%).

Wanting tailored advice and looking to someone else to do the paperwork were also cited as reasons for seeking broker support by more than a quarter of those surveyed.

The research, which looked at a sample of 2,000 first-time buyers planning on purchasing a home in the next three years, also showed that some of the fears around their lack of understanding of the process held true.

Nearly two in five (38%) had not heard of an approval in principle (AIP), and there were mixed views about the best time in the mortgage journey to obtain one, with 16% expecting to complete an AIP only once their offer on a home had been accepted.

Jeremy Duncombe, managing director of Accord Mortgages, part of Yorkshire Building Society, said: “These findings demonstrate the importance of the role the broker has to play, both now and in the future, in helping to educate and guide those looking to purchase a home for the first time.

“There is a real opportunity for brokers to add value in this area of the market, but also to secure business for many years to come.

“Our research shows the demand is there, and those advisers who get the initial interaction right could secure repeat business in the future as their clients move up the housing ladder.”


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