Eight in ten first-time buyers would use a broker when they come to purchase their home, new research has revealed.
A survey of first-time buyers found a further 13% had already engaged the services of a broker or intermediary to help them arrange their first mortgage.
And they said the main reason for using an adviser was because they wanted to gain access to more of the market and find better deals.
But the study by Yorkshire Building Society also revealed many also felt they weren’t confident enough about the purchasing process to be able to do it alone and others said they simply did not know where to search to find a good deal.
Wanting tailored advice and having someone else do the paperwork were also cited as reasons for seeking broker support by more than a quarter of those surveyed.
Fears
The research, which looked at a sample of 2,000 first-time buyers planning on purchasing a home in the next three years, also showed that some of the fears of first-time buyers around their lack of understanding of the process, or general home-buying knowledge gaps, also held true.
Of those asked, nearly two in five (38%) hadn’t heard of an approval in principle (AIP), and there were mixed views about the best time in the mortgage journey to obtain one, with 16% expecting to complete an AIP only once their offer on a home had been accepted.
Jeremy Duncombe, managing director of Accord Mortgages, part of Yorkshire Building Society, said: “These findings demonstrate the importance of the role the broker has to play, both now and in the future, in helping to educate and guide those looking to purchase a home for the first time.
“There is a real opportunity for brokers to add value in this area of the market, but also to secure business for many years to come.
“Our research shows the demand is there, and those advisers who get the initial interaction right could secure repeat business in the future as their clients move up the housing ladder.”
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