Just 10% of homeowners believe that a mortgage broker can get them a better deal than they can find themselves, according to new research from Boon Brokers.
The independent mortgage broker surveyed over 1,100 mortgage holders to find out what they understood about the role brokers play and the help they can offer.
Those in the over 65 age group were most likely to believe a mortgage broker could get them a good deal, at 12%, while for young homeowners, aged under 25, it fell to 8%.
One in seven homeowners (15%) wrongly expected they would have to pay a fee to use a broker service – even though some brokers, including Boon Brokers, work on a fee free basis. One in eight (12%) were worried a mortgage broker might have their own agenda in terms of products to push – rising to a concerned 18% of the 55-64 age group.
Despite having misgivings about using mortgage brokers, only 17% said they fully understood the details of their mortgage, 15% admitted they have never switched mortgage and 33% said they found switching mortgage a hassle, which put them off doing it.
Gerard Boon, founder and partner at Boon Brokers, said: “Despite the fact they admit they don’t fully understand mortgages and they find switching stressful, lots of people have never considered using a mortgage broker and we wanted to find out why. I think in some cases it’s due to the fact mortgage seekers are not sure what benefits they bring and for others they’re concerned about trust. Of course, like every industry, there are those who put their own interests above that of their customers, but there are many times more who will try their hardest to get a great deal for their clients.
“The key is to look for trustworthy recommendations so you feel confident in the service you’ll receive and to know that it is perfectly possible to get a great service for no fee. All mortgage brokers get a procuration fee from a lender once you take out a mortgage with them, so we, for example, decided not to charge fees directly to the client. It’s also important to find a broker who has ‘whole of market’ access, so they can scour every mortgage available to find the perfect one for you. That way they’re not tied into a small handful of providers.”