Banking crisis increases demand for brokers

The recent global banking crisis has damaged borrowers’ confidence in their ability to get the right mortgage for their needs, but they still have faith in the power of independent financial advice, according to research carried out on behalf of Kensington.

Nearly half of respondents, 44% said they now have less confidence in their ability to get the right mortgage product for their needs as a result of the banking crisis. A further 27% said they had the same amount of confidence, and only 2% said they now have more confidence than they did prior to the downturn.

However, consumers are still reassured by independent advice, with 45% saying they felt an independent adviser was best placed to find them the right mortgage – nearly twice as many as bank or building society, which was the next most popular option favoured by 25% of respondents.

The research was carried out among more than 2,000 people by YouGov on behalf of Kensington in March this year.

Charles Morley, head of sales and product development at Kensington, says: “The landscape of our market has changed considerably over the last three years so it is not surprising that consumers, particularly those whose circumstances changed during the recession, are confused by the mortgage options that are available to them.

“Fortunately borrowers still recognise the power of independent financial advice and intermediaries have the opportunity to help rebuild trust by finding products with the right criteria to suit their clients’ circumstances. Kensington understand this, which is why we have a range of products to suit different circumstances and publish our criteria upfront rather than hiding behind an automated credit score.”