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52% of homeowners say they went direct to lender

Around 52 per cent of homeowners said they went directly to their bank to obtain their mortgage, a survey from shows.

In a survey of 1,682 homeowners, 87 per cent said they did not look elsewhere for other rates or deals. When asked why they went straight to their bank for their mortgage, 61 per cent of those surveyed said it was “easy” to do.

Around 23 per cent of those taking part said their mortgage was through a bank they did not bank with, while 14 per cent had opted for a building society.

Some 59 per cent claimed to have “no idea” if they were getting the best rate for the mortgage, while 34 per cent felt they had “thoroughly researched” different options in order to get the best rate.

When asked if they felt they understood mortgages fully, 42 per cent admitted they did not. chairman Mark Pearson says: “Mortgages can be very confusing. With terms being thrown at you like ‘tracker’ and ‘fixed rate’, it is easy for things to seem complicated and I can see why many people want the easiest option of going to their bank and getting them to sort everything.

“However, one lender can offer a completely different rate to another, so you really need to shop around before buying a house. It is, after all, the most expensive thing you are ever likely to purchase and so a lot of thought and planning needs to go into it.”


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  • jon 13th September 2012 at 3:30 pm

    In my previous comment – 10.33 – I should have said a “good broker” – (and also apoligies for typos).

    It is easy to look at just the mortgage but if a full factfind was completed other factors would influence the lender recomended. It is for the industry to get over the message that cheapest is not always best advice.

    Look at other products that we all use – very few, if any, are based on being the cheapest available – I know that I can get a cheaper interest rate on my mortgage but I am happy to pay for the benefit of having the offset facility and also being able to drawdown additonal funds (without further underwriting) when I wish.

  • Doctor SP 13th September 2012 at 12:49 pm

    @Anonymous, various times…

    Ahh, a poster on these comments who hasn’t used any of my broker bingo words/phrases… (fat cat bankers/the fsa don’t know what they’re doing/all brokers are angels) – what a refreshing change!

    I can recall a time in my former life as a call centre worker where many a conversation went thusly:

    Customer: “What’s this… ‘procreation fee’ on my KFI that’s going to my broker?”

    Me: “It’s called a “procuration fee” – it’s the fee that we pay the broker for introducing the mortgage to us.”

    Customer: “But he’s charging me £1000 for using him…”

    Me: “That’s entirely between the broker and yourself. We generally always pay them a fee, and by law we have to state it on the KFI.”

    Customer: “But that’s not fair, what’s the £1000 for???”

    Me: “I suggest you call him/her and ask…”

    Given the sheer number of times this happened I would venture to suggest that the standard of advice across the industry could, at best, be described as “highly variable.”

  • jon 13th September 2012 at 10:33 am

    The comments on here expain very well why lenders want to deal with the public direct, and also why a broker is needed to advise on mortgages.

    Broker says they only deal with cheapest lender – no loyalty.

    Borrower says only needs to look for cheaper rate.

    I have an offset mortgage that allows me to save on money in the account, and recently following a phone call to the bank extra borrowings in account within 20 minutes with no additional underwriting – I would not have the advantage of either of these facilities if I had opted for the cheapest rate available at the time.

    There is more to a mortgage than just looking at the cheapest rate.

  • Wes 12th September 2012 at 4:09 pm

    I think the answer is simple really. Go to a broker and go to a bank, whoever can get you the cheaper rate you should go with. I don’t know why the select few brokers get really annoyed with this, if the rate the bank is offering is higher, why would they use a broker? It doesn’t take a rocket scientist to read through the T and Cs of an offer and any barely literate client should be able to understand the terms of the agreement. I presume to J in Petes name stands for Jealous or Jilted.

  • peter stimson 12th September 2012 at 2:31 pm


    I most certainly do not work for a bank – a rather lazy assumption

    As for the rest of your rather badly written diatribe (ever heard of puntuation?), in my experience, a large number of mortgage brokers are in fact working for themselves as they are essentially unemployable elsewhere

    Ever wondered why the banks are trying the cut the brokers out? It is because the quality of business is by all measures (but mainly loss given default)poorer – this is partly due to the nature of the beast (customer with problems/difficult cases are more likley to go to brokers) and partly as an intermediary sitting between the bank and the customer reduces transparency

  • charlotte Dean 12th September 2012 at 1:47 pm

    Pete J- 7.16am. You know what they say about people in glass houses. Check your own spelling errors before highlighting others- I spotted 2. I don’t necessarily agree with anonymous 4.59 but your comment is just ridiculous and pointless.

  • Pete J 12th September 2012 at 7:16 am

    Anonymous, 4.59, firstly learn to check your fine detail, it’s obvious you do not, hence the spelling error and hence you work in the bank, which means you have very little compliance in branch compared to the very few brokers left in business who have to measure a clients inside leg first. You dare not work for yourself because you could not, because your not experienced enough and you are lazy. Hence you have a 9-5 job doing as little as you can whilst being overpaid to knowingly take advantage of customers. As you know the remaining 48% of customers who did not go direct the bank would not touch, because it was too difficult for the customer facing mortgage seller to arrange as they where probably self employed and they did not know how to read a set of accounts.

  • fred the shred 11th September 2012 at 4:59 pm


    Or maybe, perhaps maybe, they went direct as the rates were lower – after all you brokers have been whinging for years about dual pricing and how you can’t compete

    Good also to see that it is obviuolsy just the bad old banks that rip customers off something you brokers have never been guilty of

  • JW 11th September 2012 at 1:54 pm

    Whilst a customers existing bank may not offer the best rates the mortgage process can be made easier by sticking with them. Not to mention that you are likely to receive a less expensive product fee or offered a reduction in intrest rate as an existing customer whose deal is coming to and end or as a loyalty customer. However it is essentially that you know the type of product you are looking for such a short term or long term fix accordingly to your circustances.Product fees are becoming more and more expensive so this should not be sniffed at. Currently most banks are offering competive rates to take advantage of those customers whose lenders have increased their standard vaiable rates recently such as Santander.

  • Mike 11th September 2012 at 1:28 pm

    This is why people are getting ripped off by the tens of thousands. They are not getting advice and not getting choice. This ultimately means the lenders don’t have to offer the best rates and borrowers will pay more. Mortgage advisers keep the lenders lean and competitive by offering only the best deals. So if the lender wants to lend they have to be competitive.