Is it best to get a mortgage through an intermediary or direct from the lender
June 25, 2008
Consumers that are looking for a good deal on a mortgage and are lucky enough to have good credit and a regular income can often choose from going through a mortgage intermediary, such as a broker or financial advisor, or going direct to a lender. But with so many conflicting reports with regards to which is the best route to take, things can get a little confusing for the average borrower. One industry official commented on the situation with mortgage intermediaries.
He stated: “With continuing uncertainty in the mortgage market and the total number of products continuing to decline, many more people will be considering approaching an intermediary to find them the best mortgage deal for their circumstances. However, many intermediaries are finding that their choice of products to recommend to clients has been increasingly restricted as more lenders move to offer their most competitive products just for direct only business.”
He went on to state: “Just 49% of deals on the market today are exclusive to intermediaries, whilst 23% are available through both intermediaries and direct business. Although intermediaries have 72% of the market to advise on, it’s the deals that are available direct from lenders which are the most competitive. The top 13 deals for a two-year fixed rate mortgage are only available direct, and of the top 20 deals only three are available via intermediaries.
“This reduction in competitive deals has led Jonathan Fischel, head of mortgages and credit unions department at the Financial Services Authority to advise intermediaries to advise on direct only products, and charge a fee for the advice given.”
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