In the last 12 months, 81% of buyers who successfully completed a purchase utilised the services of a broker. Furthermore, 80% of those who have purchased without a broker said if they went through the process again they would use a broker. These figures come from a study conducted by Legal and General, where the majority of respondents felt that a broker took the hassle out of selecting a product and arranging a mortgage.
As part of their Mortgage Myths campaign, Legal & General has discovered that ‘75% of first-time buyers who were due to make their purchase in the next six months would be likely to use their services’. Furthermore, according to the same research people with poor credit rating or self-employed are more likely to seek help from brokers.
The survey shows that customers who had already gone through this process, appreciated the help that they have received from their brokers. In particularly, the customers found that with a wide range of products on offer the broker help them to make the most cost-effective selection and ensure the lender was right for their personal circumstances. The broker also handled all communications with the agency and lender so that the journey was smooth and was less demanding on the time of the buyer.
However, the director of Legal & General Mortgage Club- Kevin Roberts concluded that regarding of the positive feedback that brokers has received, ‘there are still buyers out there that either remain unaware of the role of a broker or who have misconceptions about the value they can provide’.
As an agent we have dealt with a range of brokers, from an agency point of view we felt that inexperienced buyers using a broker represent a lower risk to the seller as we have the reassurance that a professional is dealing with the application; often clients save a great deal of money and the transaction moves forward more smoothly. However, having said that it all depends on which broker is used, ensure you are using a broker who is independent and can look at the whole of market without bias towards one lender. Also look for recommended brokers, not all brokers are equal, some are more experienced and more efficient than others.