The benefits of using a mortgage broker have been overlooked by a large number of homeowners, with 39% having never sought the advice of a professional to compare the different products available, according to research from mortgage broker Boon Brokers.
The number rises to 49% among the over-55 age category, suggesting that there is a generational disparity when it comes to attitudes and behaviours - particularly as some 74% of those aged between 25 and 34 say they have taken out home loans through a broker.
Gerard Boon, founder and partner at Boon Brokers, said: “There is still a lot of confusion around mortgage brokers and what they can do. A good broker with whole of market access can find the very best mortgage product out there for a client, saving them a small fortune.
“One common misconception, however, is that homeowners have to pay broker fees when applying for a home loan or remortgage.
“Consumers shouldn’t assume that broker fees are the norm, as all mortgage brokers in the UK are paid a ‘procuration fee’ by the lender upon completion of a mortgage application.
“Paying a broker fee does not guarantee a better service – there is no correlation between quality of service and broker fee charged. The only purpose of the broker fee is to increase the firm’s profit margin.”
In a bid to add further transparency to the intermediary aspect of the market, Boon Brokers has created a mortgage broker fee guide, which is available online.