A quarter of first-time buyers are planning to use a broker to arrange their mortgage, suggesting many potential homeowners are ‘underestimating’ the importance of having an intermediary.
That’s according to Accord Mortgages, which has uncovered evidence that when it came buyers who had purchased their first property in the last 12 months, nearly half had used a broker.
Yet when those who were aspiring to own their first home were questioned, just 28% said they planned to finance their property with a mortgage arranged by a broker.
Accord, which is part of Yorkshire Building Society, extracted these figures from a recent poll of first-time buyers. Yorkshire’s First-Time Buyers Report was conducted by YouGov and looked at the attitudes and concerns of a representative group of people either buying their first property or who had purchased it within the last 12 months.
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Buying a house is one of the biggest financial commitments someone can make in life so it’s no surprise that we see a shift in first-time borrowers turning to a broker for help in taking that first important step on the property ladder.
“It does, however, highlight that first-time buyers may not necessarily be factoring in support from brokers early on in their home-buying journey, perhaps because they’re unaware how intermediaries can help.”
The research also revealed a third of potential first-time homeowners were striving for a detached house as their first property while nearly a half would consider a semi-detached. Less than a quarter wanted a studio or a flat.
It also revealed how purchasing a first home was more important than any life event including getting married or having children amongst 39% of those questioned.
Duncombe added: “Our latest First-Time Buyers report offers an insight into the world of first-time buyers and could help give brokers a better understanding of the challenges they face, for example, or what they’re looking for in a property or mortgage.”
