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Brokers urged to target unserviced bank customers

Ben Thompson

Brokers are being urged to actively target borrowers who are not being serviced by high-street lenders.

Joint research from Legal & General Mortgage Club and the Association of Mortgage Intermediaries shows 44 per cent of people plan on visiting a broker the next time they attempt to secure a mortgage, while 52 per cent would go direct to their bank.

Around 75 per cent of participants who said they would go direct to a lender would do so because of an existing relationship.

Of the 2,113 current borrowers surveyed, 81 per cent would prefer to make just one attempt to secure a mortgage then trawl the high-street.

One in three borrowers – 3.4m of the 11.3m mortgage holders in the UK – plan on securing a new mortgage in the next year. The research shows low interest rates and arrangements fees are by far the most important features that borrowers seek.

Analysis of the mortgage products available direct shows that many borrowers are likely to be disappointed by high-street lenders. Thirty four per cent of borrowers have a deposit of 10 per cent or under, yet only 17 per cent of current best buy products are available to these borrowers. 

L&G Mortgage Club managing director Ben Thompson (pictured) says: “At present, more than half of all borrowers say they would apply for a mortgage directly with a high street lender with the majority doing so purely because they have an existing relationship with one rather than because they knew they offered the most appropriate deals.

“ It is clear that borrowers would benefit from professional, impartial advice that will potentially open up a lot more financing options for them and brokers have a golden opportunity to tap into this part of the market.”

AMI director Robert Sinclair says: “Brokers need to educate the consumer and be more proactive if they are to turn this latent demand into new business. The mortgage market is not suddenly going to spring back to pre-down turn levels so it is up to brokers to make the most of the opportunities out there.”

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