Are Mortgage Brokers better than Banks

Mortgage brokers are better than banks?

Your mortgage can be arranged directly with your bank or building society. Borrower do not recognize the value of mortgage brokers. Over half (55 percent) of British citizens are unaware that mortgage brokers can provide more variety than banks or home loan and savings companies, according to Legal and General. Statistics are presented in a L&G's Mortgage Club article that highlights the misunderstandings purchasers have about mortgage protection and the roles advisors can perform in assisting them find better business.

Legitimate mortgage myths - A mortgage broker's value, the survey reveals nearly half (48 percent) of home-owners and future customers who did not use a broker choosing not to do so because they believed their bank was offering them a good deal. haven't been able to find a mortgage company that was able to do this for a long time. Meanwhile, 15 percent thought they would get a lower-cost mortgage by going directly, and almost every fifth (19 percent) "didn't see the value" that a realtor would be adding to their chase for a mortgage loan.

Nearly one fifth (19 percent) of all opinion leaders and banks interviewed had recourse to the same mortgage product and business, while in fact the number of available broker option is eightfold greater. Trigold said 3,721 items were directly available to the consumer as of October 30, 2010 versus 29,886 items available through brokers.

Moreover, one in seven (14 percent) of those surveyed suspected that their banks or home savings banks would be able to give them equal unbiased guidance as a mortgage brokers. Fewer than half of those surveyed (44 percent) rightly thought that a mortgage agent worked primarily for the borrowers, with over a fourth (29 percent) saying that they thought that agents worked on them.

The L&G Group has started an information drive to break down the mortgage related legends and emphasize the importance of providing mortgage brokers with impartial consulting services. Figures come from a census of 500 people who have purchased a home with a mortgage in the last 12 month and 500 first-time purchasers who are planning to buy between 22 and 29 August in the next 6 month period.

Yeremy Duncombe, Principal, Legal & General Mortgage Club, said: "These results show that there are a number of misunderstandings that exist among individuals about the roles of mortgage brokers, especially when it comes to understand who the brokers are supposed to assist. "There is clearly a significant amount of work as an economic sector to be done to alter these beliefs, inform the consumer and encourage the benefits of using a mortgage agent.

"As an IFA and mortgage brokers, none of my customers got baffled by who I work for.

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