Good news for brokers after research shows 46 per cent consider mortgage advice ‘essential’
Despite recent claims from high street bank HSBC that 81 per cent of best buy mortgages are offered directly by lenders, recent figures from the Association of British Insurers (ABI) show nearly half of all UK adults believe it is ‘essential’ to seek help and advice when purchasing a mortgage.
ABI surveyed 2,561 adults, asking them how confident they felt when purchasing different financial products either with or without qualified advice. 46 per cent said mortgage advice was ‘essential’.
The news coincides with Nationwide extending its 90 per cent loan to value (LTV) mortgages to intermediaries, suggesting homebuyers can now benefit from high LTV mortgages and expert advice. The Building Society’s 90 per cent LTV deals include a three-year fixed rate at 5.39 per cent and a five-year fixed rate at 5.69 per cent and also come with a £500 fee discount for first time buyers.
These low-deposit products were previously only available to existing customers and homebuyers who used the Society’s FlexAccount as their primary bank account.
Ian Andrew is the Head of Intermediary Sales:
“This news is further evidence of how we are actively supporting the housing and mortgage markets, in particular, those with smaller deposits.
“We know brokers often speak to customers who are struggling to raise deposits of 15 per cent or more so we’re pleased that they will now be able to offer them our competitive three and five year fixed rate deals with just a 10 per cent deposit. On the average property, this will bring the level of deposit required down from £24,750 to £16,500 – welcome news for first time buyers and those upsizing to a bigger home.”¹
Content correct at time of publication