Mortgage brokers now giving more advice

Mortgages: Brokers give more advice in credit crunch

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Monday, 19, May 2008 12:01

Three-quarters of mortgage brokers feel their role is becoming more advisory as the credit crunch squeezes the market.

A poll by Alliance & Leicester reveals 47 per cent of brokers believe the low confidence in property and the economy is leading them to provide clients with more insight into the market.

Over the past six months, the average mortgage broker has spend 29 per cent of their time to offering advice and guidance to potential borrowers.

However, 48 per cent of brokers find that the added time involved in giving more advice isn't affecting their business financially.

Furthermore, new figures from the Council of Mortgage Lenders (CML) show first-time buyers are increasingly looking to mortgage intermediaries to help them get a mortgage and find the best deal.

Raj Uppal, director of mortgages at Alliance & Leicester, said: "The high-profile news coverage about economic issues, the economy in general and the housing market mean broker's advice and expertise will play an important role in helping their clients find the right product.

"Mortgages have hit the main news agenda in recent months and this has perhaps led to more people questioning brokers about the different aspects involved in taking on a mortgage.

"Instead of simply using a broker to source products, borrowers are now making the most of their advisory services to learn about affordability and extend their product understanding."

Richard Farr, director of the Association of Mortgage Intermediaries, said: "Mortgage intermediaries are playing a vital role in the current market place as first time buyers struggle to find a mortgage deal.

"Consumers clearly value the advice they receive from mortgage brokers.

"Intermediaries are able to identify the most suitable product for the consumer at a competitive price and analysis of consumer attitudes show they value this advice much higher than that provided by the lenders. In these difficult times it is more important than ever for consumers to access good advice."