Mortgage brokers used by under a third of FTBs
Recent research has found that only 28% of those taking their first steps on the property ladder intend to fund their property purchase with a mortgage arranged by a broker.
According to a Yorkshire Building Society survey, prospective first-time buyers are underestimating the importance of a broker when looking for a home, although this seemed to change later down the line.
This is indicated by results of the survey which showed that 47% of those who bought a home within the last year had used a broker to assist with their mortgage.
As well as the use of brokers, the study also indicated how highly potential borrowers value the purchase of a property; just under two fifths (39%) stated that owning a home was more important to them than any other life event.
Commenting on the results of the survey was Jeremy Duncombe. The director of intermediary distribution at Accord Mortgages said: “Buying a house is one of the biggest financial commitments someone can make in life so it’s no surprise that we see a shift in first-time borrowers turning to a broker for help in taking that important first step on to the property ladder.
“It does however highlight that first-time buyers may not necessarily be factoring in support from brokers early on in their home buying journey, perhaps because they’re unaware of how intermediaries can help. This shows there is still much opportunity for brokers to promote their services to help guide aspiring buyers to a mortgage best suited to their needs, at a potentially overwhelming time of their life.
“Our latest First-Time Buyers Report offers an insight into the world of first-time buyers and could help give brokers a better understanding of the challenges they face for example, or what they’re looking for in a property or mortgage which could help brokers when they are speaking to clients just starting out.
“From a customer point of view, it shows that an earlier conversation with a mortgage broker could help prospective first-time buyers consider their options and understand the possibilities sooner in the process.”