Homebuyers putting eggs in one basket
We compare supermarkets bills, credit card rates and energy suppliers but when it comes to our biggest financial expenditure a quarter of us fail to shop around.
According to Which? Mortgage Advisers 23 per cent of borrowers admitted to not shopping around for their mortgage, appearing to prioritise convenience; 40 per cent took out a home loan with their existing lender or with the provider where they hold their bank account despite 32 per cent describing bank staff as giving ‘poor advice’.
One in five borrowers who did not seek professional financial advice regretted their decision.
Lynne McCaffrey, Head of Property, comments:
“Taking out a mortgage is a massive financial commitment, the biggest one we’ll make in our life. That said I am not all that surprised that a quarter of borrowers don’t undertake a thorough enough search for their mortgage deal – after getting a few rates it’s hard to see the wood from the trees!
“Many borrowers tend to ‘go for what they know’ and head directly to their existing lender on the basis that their ongoing relationship will help the secure a decent deal. While many lenders will offer existing clients specific rates, this does not necessarily mean they are the best around.
“A mortgage broker however covers the whole of market as well as having access to exclusive intermediary deals. But not only this, they can help remove any unwanted foliage, explaining the intricacies between deals and help you find the right deal for you, not just the easiest.
“Going to a mortgage broker does not complicate matters, in fact it makes it simpler. While you may have a wider choice, their experience means they can root out the pick of the crop. That’s why more borrowers who use a broker are far more confident that they have secured a good deal than those who don’t.”
Content correct at time of publication