‘Skip the broker altogether’ say consumers

by Caroline Dann20 Jul 2012

Consumers believe going direct to the bank will secure a better deal, according to new research.

A Loan Market survey of brokers found the biggest misconception they faced was consumers believing a direct-to-bank approach would result in a cheaper loan.

 
The second biggest misconception was that broker services came at a cost.
 
Loan Market spokesperson Paul Smith said it was crucial consumers know the value of using brokers, not only to secure a good deal but to utilise their experience in the market.
 
“The reality is that a mortgage broker can negotiate your needs between several lenders and uncover discounts not available to those shopping on their own,” he said.
 
However, new research shows nearly 50% of home loans are written through mortgage brokers, showing a shift in attitudes of lenders.
 
“The banks and lenders are moving to recognise mortgage brokers as a preferred distribution network for mortgages because of the number of customers using them and the fact there are no fixed costs associated with brokers such as a branch facility,” he said.
 
 
 

COMMENTS

  • by BradQ 20/07/2012 10:34:19 AM

    well.... the second biggest misconception is that brokers come at a cost. An article last week said that 26% of brokers now charge a fee ... so it isnt a misconception is it?

  • by Patrick 20/07/2012 10:38:57 AM

    The massive decrease in commission, with no parallel reduction in branch labour costs, is what has made the broker channel attractive. Had branch loan officer wages or business quotas, been adjusted to the same extent there would have been a long and bitter bank employees strike. It was just a another grubby profit grab by the fat cats in bank management.

  • by Scott Beattie 20/07/2012 10:44:07 AM

    What a great target to promote via the MFAA and or FBAA - using an MFAA member should be as widely known as using a CPA...