39% of mortgage holders have never used a mortgage broker

A sizable chunk of people have never used a mortgage broker, despite the benefits of having a professional compare the different products.

The number rises to nearly half (49%) amongst over-55s, suggesting there is something of a generational divide when it comes to using an intermediary.

Indeed, three quarters (74%) of 25 to 34s saying they have used a broker for a home loan.

The research comes from mortgage broker, Boon Brokers.

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

“One common misconception, however, is that homeowners have to pay broker fees when applying for a home loan or remortgage.

“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.

“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.”

Boon Brokers has created a guide to mortgage broker fees available online, in a bid to make this aspect of the intermediary market more transparent.