Boon Brokers: 39% of owners never used mortgage broker

Of those who have purchased a property, 39% have never used a mortgage broker, according to Boon Brokers.

A survey of 2,000 mortgage holders, shows that the number of property owners who had never used a broker for the over 55 category rose to 49%.

Looking to a younger generation of homeowners, 74% of those aged between 25 and 34 outlined that they had used a broker for a home loan.

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Boon Brokers noted that one in seven of those who have used a mortgage broker do not know if they had whole of market access.

Furthermore, the firm believes broker fees are an area which creates confusion for customers.

Boon Brokers contacted 44 brokers, which revealed that 59% do charge clients a fee, with the average amount noted at £559.

However, 100% of brokers outlined that they received a procuration fee from the lender.

Gerard Boon, founder and partner at Boon Brokers, said: “There is still a lot of confusion around mortgage brokers and what they can do. A good broker with whole of market access can find the very best mortgage product out there for a client, saving them a small fortune.

“One common misconception, however, is that homeowners have to pay broker fees when applying for a home loan or remortgage. Paying a broker fee does not guarantee a better service – there is no correlation between quality of service and broker fee charged. The only purpose of the broker fee is to increase the firm’s profit margin.

“I think it is vital the industry is more transparent about what it is offering and what costs there might be for a homeowner – there should be nothing to hide, which is why we created what we believe to be the most comprehensive guide to mortgage broker fees available online.”