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Mortgage borrowers turn to advice

Mortgage borrowers are increasingly seeking quality advice when looking for a homeloan, according to research by the Mortgage Code Compliance Board.

The regulator says more and more borrowers are ignoring low headline rates and the brand names of lenders when shopping for a mortgage and instead seeking the services of a quality broker or IFA.

The MCCB says the shift towards advice has come as borrowers realise the cheapest deals are not always the most suitable. Its survey found that mortgage professionals believe that 89 per cent of borrowers are now going for suitability of product instead of headline rate or brand name.

As a result, the MCCB says around 70 per cent of customers now seek mortgage advice when looking for a loan. In particular, it says borrowers want to be advised on how special deal periods work after several years, the mixture of penalties and other loan terms and conditions.

The research also shows that mortgage professionals believe there is a declining number of borrowers who chase rates and switch lender on a regular basis.

Chief executive Luke March says: “The feedback from the industry is that most of our customers want quality advice that guides them towards suitable products.

The responses show a more knowledgeable consumer, looking for the right kind of loan overall and a good and sustainable mortgage rate.”

Charcol senior technical manager Ray Boulger says: “This means the message is getting across to consumers that they must look at factors other than headline rate when looking for a mortgage and that they should seek advice.”

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