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.
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.