Buying a home is challenging, and it is helpful to get as much guidance and support as you can. A lot of people rely on estate agents for help at many parts of the process, but an estate agent may not be the best person for guidance at every step of the house buying process.
A recent report issued by the FCA, their Mortgage Market Study Final Report, indicates many buyers feel pressured into using an estate agent’s linked or in-house mortgage broker. The report states around 25% of all buyers selected an in-house broker because they were recommended to do so, and close to 6% of all respondents said they felt pressured into choosing this professional.
The FCA is looking to change this state of affairs. The organisation intimates it wants property buyers to feel a sense of freedom when they look for a mortgage. It is best to make an informed decision on your mortgage because it is the most significant commitment you’ll make in your life. Therefore, it is perfectly understandable for some homebuyers to look for advice and recommendations from people they trust in the industry.
Find a broker you can rely on and trust
Of course, not all brokers are the same. Some brokers have more experience, more considerable expertise, and some have stronger connections throughout the industry. Just because an estate agent recommends a broker doesn’t mean they are necessarily the best broker for that mortgage applicant.
The FCA wants homeowners to be furnished with information relating to how many lenders a broker has access to. The report states, “This might also help consumers referred to an intermediary by estate agents and/or developers. Consumers would be better placed to identify whether that intermediary offers the level and quality of service that they want.”
Many industry organisations are speaking out on the topic of mortgage brokers
The HomeOwners Alliance have also backed the FCA, and they too are calling for estate agents to reduce pressure placed on property buyers in choosing selected mortgage brokers. ARLA Propertymark has also spoken out about the relationship between some estate agents and mortgage brokers in 2019, so this is an area of the industry that is coming under increasing scrutiny.
Not all mortgage brokers recommended by estate agents are questionable; some provide a reliable standard of service. However, this cannot be said across the board, and this creates confusion for many property buyers. If you’re looking for guidance in this area, speak to a firm without these ties.
We know obtaining a mortgage is likely to be the most significant decision and commitment of your life. Therefore, you need guidance and support you can trust. While there are many areas where an estate agent can help you in buying a home, choosing a mortgage broker may not be the best option.
If you have any queries about using a mortgage broker or you need guidance in the market, contact Mortgage Simplicity. We are pleased to say we have helped many homebuyers find their ideal solution, and we look forward to assisting you.