78% of first-time buyers would rely on broker, study finds

Seventy-eight per cent of first-time buyers have said they would be likely to use a broker to help them arrange their first mortgage, new research from Yorkshire Building Society has revealed.

A survey commissioned by the society indicated that a further 13% said they had already done so.

The findings, based on a nationally representative sample of 2,000 UK first-time buyers, suggested the main reason that more than a third (36%) of respondents would turn to a broker is to gain access to more of the market and better deals. This was closely followed by not feeling confident enough about the purchasing process to be able to do it alone (34%) and not knowing where to search to find a good deal (28%).

Wanting tailored advice and looking to someone else to do the paperwork were also cited as reasons for seeking broker support by more than a quarter of those surveyed.

The research also showed that some of the fears that first-time buyers have around their lack of understanding of the process, or general home-buying knowledge gaps, also hold true. Nearly two in five (38%) of those asked hadn’t heard of an approval in principle (AIP), and the study also revealed mixed views about the best time in the mortgage journey to obtain one, with 16% expecting to complete an AIP only once their offer on a home had been accepted.

Jeremy Duncombe, managing director of Accord Mortgages which is the intermediary lending subsidiary of Yorkshire Building Society, commented: “These findings demonstrate the importance of the role the broker has to play, both now and in the future, in helping to educate and guide those looking to purchase a home for the first time.

“There is a real opportunity for brokers to add value in this area of the market, but also to secure business for many years to come. Our research shows the demand is there, and those advisers who get the initial interaction right could secure repeat business in the future as their clients move up the housing ladder.”

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