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Remortgagers shun broker help

The number of people using an independent adviser to help with a remortgage has dropped by 28% this year, new figures show.

Just 33% of remortgagors consulted intermediaries in September, down from 46% in January, according to new figures from LMS.

This also marked a sudden drop on July and September August, when the figure stood at 38%.


LMS said fewer were seeking advice despite growing speculation regarding an interest rate rise.

LMS also suggested that months of heightened competition between lenders could be coming to an end, with lenders appearing to be limiting their best available offers.

The result is that fewer borrowers can take advantage of record-low rates.

The number of people who remortgaged for this reason fell from 63% in August to 60% in September.

The number of people remortgaging to reduce their monthly payments by up to £500 fell from 34% to 29% in September, suggesting that rates are now less competitive and fewer people are able to make large savings as a result.

Some 28% of those remortgaging did so to increase the size of their loans, down from a peak of 35% in June this year.

Andy Knee, chief executive of LMS, said: “In recent months, lenders have flooded the market with a range of new products and record-low interest rates in an effort to boost activity and meet lending targets for the year.

“This has encouraged borrowers to go directly to the lender rather than seeking advice.

“However, at a time when there is growing uncertainty and confusion about the introduction and impact of an interest rate rise, it is concerning that more people are not seeking intermediary help.

“An independent adviser or broker can play an invaluable role in helping track down suitable mortgages and navigate borrowers through tougher rules and stricter lending criteria to ensure they get the best option available to them."


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