But the Home Buyer Sourcing Index, its system that compares direct and broker facing mortgage products has also found that for first-time buyers there is only one product, which over two years is £3137 more expensive than the cheapest direct product. This equates to £130 a month more.
The HBSI uses the Council of Mortgage Lenders’ published figures for the average property values for first and second time buyers, together with whole-of-market product information from Defaqto.
It shows the difference in cost to the borrower between the cheapest broker and the cheapest direct product.
Home Buyer says that direct-to-lender products are up to £2900.00 cheaper for the borrower over two years (equivalent to £123.75 per month) than the broker-distributed equivalents for the non First Time Buyer products.
Richard Angliss, managing director of Home Buyer, says: “Direct-to-lender products have consistently been cheaper for borrowers since the dual-pricing issue first came to light in July, making it harder for brokers to earn procuration fees. Now, the lack of 90% deals via brokers is bound to cause further problems for brokers, packagers and networks.
“To help resolve both the dual pricing problem and the current lack of 90% LTV products available to brokers, the Home Buyer Sourcing Index provides accurate, up-to-date, generic information for brokers and their customers. “