Eight in 10 first-time buyers want to use a mortgage broker
Almost eight in ten (78%) first-time buyers said they would be likely to use a broker to help them to arrange their first mortgage, said Yorkshire Building Society.
The mutual commissioned the research, which looked at a sample of 2,000 first-time buyers planning on purchasing a home in the next three years.
It revealed that the main reason aspiring homebuyers want to get the help of a broker is to gain access to more of the market and better deals, cited by a 36% of respondents.
A third said they didn’t feel confident enough about the purchasing process to be able to do it alone (34%) and wanted broker support. And 28% admitted they didn’t know where to search to find a good deal.
Wanting tailored advice and looking to someone else to do the paperwork were also key reasons for seeking broker support, said more than a quarter of those surveyed.
Lack of knowledge
The research also highlighted a lack of understanding of the mortgage and homebuying process among first-time buyers, meaning they are right to seek professional help from a broker.
Nearly two in five (38%) hadn’t heard of an approval in principle (AIP), also known as an Acceptance in Principle, Decision in Principle or Mortgage in Principle. And there were 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.
In fact you can take out an AIP before you view properties, to give you a rough idea of your borrowing and purchasing power.
Jeremy Duncombe, managing director of Accord Mortgages, part of Yorkshire Building Society, said: “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.”