The number of borrowers turning to mortgage brokers for guidance has jumped from 70% last year to 83% in 2018, according to a new survey.
Remortgaging volumes hit an eight-year high in July, but transaction levels are yet to reach the volumes achieved before the financial crisis.
The financial crisis saw the number of mortgage products available fall from 6,700 in 2008 to 1,250 in 2009. However, the number of products has gradually been increasing again, reaching 3,000 in 2011, 4,000 in 2015 and now going above 5,000 in 2018.
The findings come from Legal Marketing Services (LMS), a conveyancing service provider.
LMS’ chief executive, Nick Chadbourne, said: “In an environment where so many products are available, more people are looking to mortgage brokers for advice. Our data shows that the number of remortgagors consulting a broker has risen to 83% - the highest we’ve come across.”
Consulting a broker can have numerous benefits, whether a first time buyer is ready to make their first purchase, a home mover is looking for a mortgage for their next property, or someone wishes to remortgage their existing home to improve their financial situation.
A good mortgage broker will help customers to compare hundreds of mortgage products across the market before highlighting the ones that are most cost effective. Rather than simply highlighting the products that are the most affordable on a monthly basis, they’ll identify the mortgages that are cheapest in the long term, taking into account any fees, charges and cashback options.
Mortgage brokers will also point their clients in the direction of the lenders most likely to approve their application in the first place. If a customer has a bad credit rating, small deposit, low income or they’re self-employed, a skilled broker will recommend the most flexible lenders rather than those who have a reputation for rejecting applicants with more complicated finances.
Nick Chadbourne added: “In the current landscape, it’s sensible to consult a broker to get the best deals, considering not only headline rates but the additional value of extras such as free legals. Brokers can help people make sensible decisions and select the right product to suit their individual requirements.”
If you’d like the support of Taylormade, whether you’re a buyer or someone wishing to remortgage, please get in touch with our team today.
