Consumers choosing broker deals over direct when searching online

JAMES SADLER, BROKER DEALS, IN DEMAND
JAMES SADLER, BROKER DEALS, IN DEMAND

Four out of five consumers con-sidered deals available through brokers ahead of direct ones in July, mortgage sourcing tool provider Mortgage27 reports.

Mortgage27 offers online mort-gage sourcing via brokers’ own web-sites where both direct and broker products are offered side by side.

Customers are unaware whether deals are available direct or via intermediaries when searching the system.

And Mortgage27 says that out of more than 10,000 searches completed, 79% clicked on broker deals.

The research contradicts recent HSBC research and comments by Moneysupermarket.com that the best deals are available direct only.
James Sadler, managing director of Mortgage27, says the statistics show support for brokers.

He adds: “The intermediary market is still going despite the opportunity for other mediums such as direct and online. But the mortgage market is changing and brokers and lenders must change with it.

“With borrowers wanting to do more of their own research the internet is growing in importance. Online systems and information is becoming more important to brokers.”

Mortgage27 provides a monthly report on the mortgage market for brokers on its website. The latest report for July shows that 57% of consumers looked at fixed rate deals, with a third considering trackers.

Only 1% of customers considered 95% LTV deals but a third looked at deals at 80% LTV or over. The most popular choice was 75% LTV which was viewed by 35% of consumers.

David Copland, managing director of the Pink Home Loans, says it is great news that brokers are winning on price.

He adds: “Consumers want brokers for advice because when they go to a branch they don’t get advice, just information. They would prefer to deal with a broker who is part of the community.

“Obviously, I would prefer all deals to be available to brokers but networks must get the balance right. Luckily lenders such as Coventry Building Society

have managed to not dual price, which is positive.”

Two-thirds of consumers considered deals where legal fees were payable, while 56% looked at packages with valuation fees payable on application.

Over seven in 10 – 71%- looked at deals allowing 10% over-payments a year, while three-quarters picked deals where payment holidays were unacceptable.

And only 8% of consumers looked at buy-to-let products.