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Mortgage Brokers save clients £1830 a year

Brokers save clients £1830 a year

The Association of Mortgage Intermediaries (AMI) 'value of mortgage advice' report has estimated intermediaries could save consumers up to £1830 per year compared with going direct to lenders.

http://www.mortgagesolutions-online.com/public/showPage.html?page=795345
:cool:

Comments

  • Ionkontrol
    Ionkontrol Posts: 802 Forumite
    Reaction to the fact that some of the cheapest deals are on a direct basis only? Hmmmm.
  • sarkin1
    sarkin1 Posts: 283 Forumite
    Part of the Furniture Combo Breaker
    Cummings added: "Consumers can choose to shop around themselves rather than use an intermediary. However, research shows that half of consumers who purchased a mortgage on a direct basis did so from their own bank or building society without considering any other option.

    A further 39% contacted no more than three lenders
    . This significantly reduces the likelihood of finding the most competitive mortgage for the individual's own circumstances.
    :cool:
  • nathanhill69
    nathanhill69 Posts: 217 Forumite
    sarkin1 wrote: »
    Brokers save clients £1830 a year

    The Association of Mortgage Intermediaries (AMI) '

    "Nuclear Fusion is a totally safe and a clean source of energy so say Britsh Nuclear Fuels".

    I think you can see what I'm getting at

    I have nothing against Mortgage Brokers and have used one in the past and been happy with their service but a report published by their own professional association....well they would say that wouldn't they.
  • Graeme7777
    Graeme7777 Posts: 255 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Hi,

    Is that saving net of the costs of intermediation? For example, the commissions that lenders pay to brokers?

    Personally I think that advisers can be very helpful to borrowers, especially in a complicated market like the UK. I'm just a little curious about how the stats are calculated.

    Thanks
  • Dan_Collins_2
    Dan_Collins_2 Posts: 1,377 Forumite
    To be fair, the AMI have been pretty useless in our fight to cut dual prices, I think this is an attempt at showing how brokerts can help.

    We are in an unusual market. Last year this would have been very true.
    :confused:
  • dunstonh
    dunstonh Posts: 120,149 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You have to remember that the country is full of people that go to one or two high street lenders and pick the deal with little or no research. Most of those would save money using a broker.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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