Money Tip from Gareth Lowman of SPF Private Clients
Nearly a third of borrowers are not getting the cheapest mortgage, according to the Financial Conduct Authority. The regulator argues that it should be easier to search for the right deal with more tools available to help both consumers and brokers.
Even though the majority of borrowers seek advice from a mortgage broker, the report found that there was little difference in the eventual cost of the mortgage the customer ended up taking out.
However, while cost is of course a factor when choosing a mortgage, it is a very simplistic approach to look at purely getting the ‘cheapest’ mortgage. There may be other factors involved which is why one mortgage is chosen over another, including service, criteria, non-tangible motivations and so on.
Despite some of the reservations outlined in the report, it would not be prudent for borrowers to discount brokers as an avenue for obtaining advice. It is undeniably harder to get a mortgage than it was in the past owing to tighter affordability criteria, coupled with the wide range of deals available. A broker can guide you through the mortgage maze and help you find the right deal for your particular circumstances.