Despite almost record levels of mortgage product affordability, savvy home buyers are still searching for the best deals with 46% opting for a mortgage broker instead of going direct to a bank or other lender.
Of those that opted for a broker, some 65% used a whole of market broker in order to get the very best deals available on the market but 30% didn’t know if the broker they used was whole of market, according to new research.
The survey report from One77 Mortgages suggests that this means that they could have missed out on the best deals available to them.
It also says that while home buyers may be more switched on when it comes to the best rate for their financial position, the majority are choosing to ignore other vital aspects when obtaining a mortgage that could see them in financial difficulty further down the line.
Just 35% opted for life insurance via their broker, while even less, some 26%, opted for critical illness insurance, and just 13% of those asked stated they had taken out building and content insurance, with the majority again choosing not to.
‘Many home buyers, especially those doing so for the first time, will often go straight to their current banking provider for a mortgage quote and aren’t aware of the restrictions this can place on the potential deals available to them,’ said Managing Director of One77 Mortgages, Alastair McKee.
‘It’s encouraging to see that the majority are opting for a whole of market broker in order to find the best deal. Despite the current levels of affordability, who knows what could happen a year or two down the line and so securing the best rate now is a smart move,’ he explained.
‘That said, it’s worrying to see how many are continuing to take a risk, particularly where life and serious illness insurance is concerned. We appreciate that buying a house is probably the most expensive purchase you will make, and it may feel like you’re being upsold additional insurance cover that isn’t really necessary,’ he pointed out.
‘However, when the worst does happen it can plunge people into severe financial difficulty if they don’t have the relevant protection, and we’ve seen this happen on numerous occasions,’ he added.
