Thirty-nine per cent of mortgage holders have never used a broker, according to research from Boon Brokers.

The study, which surveyed 1,958 current or previous mortgage holders, showed that the number who had never used a broker rose to 49% for those over the age of 55.

Boon Brokers said its findings show that many homeowners could have reached full ownership of their property without ever having had professional advice to help them secure the best mortgage – potentially paying thousands of pounds on unnecessary interest and fees.

Younger homeowners were more likely to have consulted an expert, with 74% of those aged between 25 and 34 saying they have used a broker for a home loan.

“There is still a lot of confusion around mortgage brokers and what they can do,” commented Boon Brokers founder and partner, Gerard Boon. “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.”

Boon Brokers also suggested that broker fees can be another area of confusion for homeowners. The study questioned 44 mortgage brokers across the country to find out more about their practices, revealing 59% do charge clients a fee. The average amount was found to be £559, but with some charging more than £1,000. This is despite 100% of the mortgage brokers questioned admitting they also get a procuration fee from the lender.

“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,” Boon added.

“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.

“I think it’s vital the industry is more transparent about what it is offering and what costs there might be for a homeowner – there should be nothing to hide.

“People need to feel confident they know enough to question fees and charges they might encounter. Now more than ever, it is vital that homeowners understand all suitable mortgage options before agreeing to a mortgage product.”

Share Story: