According to new research by MetLife UK, 43% of prospective and current homeowners admitted to using a mortgage adviser or broker to secure their mortgage.
The biggest barrier appeared to be cost, with 23% of respondents citing price as the reason they didn’t seek advice from a broker or adviser.
Why are homebuyers not using advisers or brokers?
Cost is the biggest reason that homebuyers are not seeking to use advisers or brokers, and also the widespread misconception about how mortgage brokers operate. There are mortgage brokers who don’t charge buyers a fee but instead take a commission from the mortgage provider.
Some homebuyers do not trust advisers, as the research found that 11% of respondents said they didn’t use an adviser when buying a property because they didn’t trust them. Consumers are also unsure of when to seek financial help, with 10% of those surveyed admitting they didn’t know they could speak to a financial adviser or mortgage broker when purchasing a property
Rich Horner, head of individual protection at MetLife, comments: “Buying a home is likely to be the biggest financial purchase a person ever makes and yet many people avoid speaking to an expert before doing so.”
“The past 12 months have put many people’s finances under strain and made financial situations much more vulnerable. For some, their employment status may have changed particularly with more people being self-employed or part-time, meaning they may need a more specialised mortgage product that only advisers have access to and that walking into branch is unavailable. “
What are homebuyers doing instead?
According to MetLife’s research, 40% of consumers went directly through their bank and 20% continued through their current provider. Consumers were also seeking help from family and friends, with 12% of respondents saying that was their preferred method.