Would you seek advice or would you rather take the first deal that comes along?

Morgage Broker advice

You might wonder what brought me to ask you such prominent question on a sunny August morning… Well I have been doing some reading again and came across the following survey results produced by GoCompare:

According to the survey, of those people who bought their home insurance through their mortgage lender, a shocking 30% – almost 500,000 home owners- believed buying their lender product was a condition of the mortgage deal. What’s more, 24% of borrowers who arranged their insurance with their lender believed that if they switched to another provider this will invalidate their mortgage. Perhaps even more shockingly, 12% of these customers said they felt under pressure to buy their lenders product and 6% said they were actually told by their lender they had to.

Now, I found this shocking that there are still consumers out there who would still go to their lenders directly without shopping around or seeking advice. Especially that a mortgage, for most of us, is the biggest financial commitment we have. In the words of Jason Berry of Uinsure this is the equivalent of a motorist pondering ‘shall I shop around or just buy the first car I see’.

As a mortgage broker with access to lenders across the whole marker, I have to ask whether this is because some consumers still don’t understand the difference between the lender and a mortgage broker. Just in case you are not sure about this I enclose an explanation below:

A direct lender is anyone that can offer a mortgage, including commercial banks and their representatives can only sell that particular company’s mortgage products. To put it plainly, they can only show you the products they are given – from one company. Although there may be a rather large number of products, they are limited as to what the company offers.

A mortgage broker, on the other hand, would have at his or her disposal, an extremely wide selection of products because they regularly deal with many companies. In fact, a mortgage broker can represent a couple of hundred different companies, and therefore would be able to offer many hundreds of different mortgage options based on your requirements and circumstances.

I hope this has given you a better understanding and will help you make a different choice next time you are looking to re-mortgage or buy related insurance products.

Should you need some immediate help, visit our website for more information or get in touch to arrange an initial appointment at a place and time to suit your busy schedule.



Your property may be repossessed if you do not keep up repayments on your mortgage.


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