Using a broker saves thousands

The Association of Mortgage Intermediaries yesterday published their Value of Mortgage Advice report in which they reveal that brokers could save consumers up to £1,830 every year.

The research for the report was conducted by independent financial services market research company NMG, who were tasked with examining the difference in value obtained by those using a broker to source the best mortgage deals, and those who went direct to lenders.

Chris Cummings, Director General of the AMI said “Intermediaries are able to identify the most suitable product for the consumer at a competitive price”. He further stated “Analysis of consumer attitudes shows they value this advice much higher than that provided by lenders, and in these difficult times it is more important than ever for consumers to access good financial advice”

Cummings adds: “Advisers know their clients and use this insight and their knowledge of the market to identify the most suitable and most price competitive products for the client. If the government wants to achieve its aim of more fixed rate mortgages, this will be done via intermediaries.”

It is thought that one of the reasons mortgage brokers offer such value is that they will look at the true cost of a particular deal, taking into account the effect of any charges. When consumers approach a lender direct, their decision as to which mortgage is best is often based on seeking the lowest headline rate, and with the lowest rates now attracting the highest arrangement fees, this can often prove to be an expensive mistake.