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L&G research points to importance of mortgage brokers

Data collected by Legal & General shows that 31 per cent of the 2,000 UK homeowners surveyed did not understand how a mortgage adviser could assist them when searching for a new mortgage deal.

The survey also revealed that 69 per cent of borrowers who went straight to a lender had not remortgaged in the previous five years.

L&G adds that 60 per cent of borrowers who did not seek advice when they last took out a mortgage did not know advisers were there to help, and 34 per cent thought a mortgage adviser was there to support the lender.

The figures show that 98 per cent of borrowers who used an adviser said they found them valuable, and 95 per cent would recommend using one to family or friends.

Additional data collected by fintech company Twenty7Tec shows that there are almost 12,000 mortgages available through advisers, compared to 2,000 directly.

Legal & General Mortgage Club director Kevin Roberts says: “Our research shows that potentially thousands of borrowers still do not know how a mortgage adviser can help with their mortgage search and as a result they could be missing out on a better deal.

“The figures speak for themselves. Those who used a mortgage adviser when they took out their last mortgage would overwhelmingly recommend their family and friends to seek independent, professional advice.

“They are also more likely to switch their mortgage product and when they do borrowers can have access to nearly six times the number of products available than if they went direct.”

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The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

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