Independent research highlights mortgage broker could save consumers £1,830 per year

The Association of Mortgage Intermediaries (AMI) 'value of mortgage advice' report produced by independent financial services research company NMG has estimated intermediaries could save consumers up to £1830 per year compared with going direct to lenders.

The report examines the value of mortgage intermediaries to consumers in getting them the most suitable mortgage, at the best price, with the best service.

Chris Cummings, Director General of the AMI, said:
“Intermediaries are able to identify the most suitable product for the consumer at a competitive price. Analysis of consumer attitudes shows they value this advice much higher than that provided by lenders. Independent research suggests that intermediaries could save consumers £1,830 per year compared with going direct to lenders. And in these difficult times it is more important than ever for consumers to access good financial advice.

Consumers should not miss out on the benefits of using a mortgage adviser. We also call on the industry, regulator and the government to give their backing to the role of advice in the mortgage market at these difficult times for consumers.”

Chris Cummings added:
“Consumers can choose to shop around themselves rather than use an intermediary. However, research shows that half of consumers who purchased a mortgage on a direct basis did so from their own bank or building society without considering any other option. A further 39% contacted no more than three lenders. This significantly reduces the likelihood of finding the most competitive mortgage for the individual’s own circumstances.

“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.”

The report noted that within the intermediary channel there are currently over 11,500 registered intermediary firms, with an estimated 40,000 advisers. Between April 2006 and September 2007 there were 2.1m intermediary mortgages, which represents 61% of all mortgage sales during this period.

Related Articles