Four in five FTBs say using a broker was worth it
Four out of five first-time buyers say that using a mortgage broker was helpful, a survey by Comparethemarket has found.
The comparison website’s research revealed that almost 80 per cent of first-time buyers found using a mortgage broker “added value”, while nearly 20 per cent felt that using a mortgage adviser had not added any value at all.
However, even among those who did not value their broker, 44 per cent say they would be too nervous to arrange their next mortgage deal without the help of an adviser.
Nearly a quarter of first-time buyers went straight to their bank to take out a mortgage rather than shopping around for the most competitive rate.
Only 12 per cent looked into their options on a price comparison website when taking out a mortgage.
The research also looked at areas of regret among home buyers.
It found that half of homeowners felt they had made costly mistakes when buying their first home.
The study shows 15 per cent wished they had haggled more on the price of the house when buying their first property.
Meanwhile,10 per cent of respondents said they made a mistake in using all of their savings to fund the deposit on their first home, leaving them with no emergency savings and an inability to do any work to the property.
More than a quarter felt they paid over the odds to intermediaries such as brokers, solicitors, surveyors and estate agents.
Comparethemarket head of mortgages says: “People with no prior experience in purchasing a property may not be aware which services and products offered to them on the home buying journey are mandatory and which are discretionary and, importantly, whether they are good value or uncompetitive.
“The whole buying procedure can be intimidating, particularly for those going through the process for the first time.
“Fears around hidden fees and dealing with estate agents, lawyers, surveyors and mortgage companies are legitimate and strong enough to put off people from trying to make a purchase.”
Coreco director Andrew Montlake says: “The research shows that while brokers are doing a good job for many, the industry still needs to do more to educate the public about the benefits of getting advice.
“For first-time buyers looking at options such as Help to Buy and the many alternatives there are so many options that it is crucial they speak to a broker to get the best deal.”
Source: Mortgage Strategy