14% of both brokers and consumers believed that more product choice encouraged consumer engagement
Over half (56%) of more than 1,500 consumers who had purchased a mortgage recently, went direct to the lender, MCI Club has stated.
49% of those said that they felt more secure dealing direct.
However, of those who did engage a mortgage broker, 52% did for the reassurance that the broker’s advice would help them to choose the correct product, 46% to access more lenders, and 38% for better rates.
MCI’s parent company, DPR Group, conducted the research earlier this year. The DPR Group’s Mortgage Insights 20/21 research investigated the challenges faced by mortgage consumers, brokers and lenders alike.
When looking at how many consumers go direct to lender compared to the number using a broker, mortgage brokers roughly matched that of consumers with 72% stating that they believed the total amount of direct to consumer origination was between 11% and 40%. 14% of both brokers and consumers believed that more product choice encouraged consumer engagement.
21% of brokers stated that borrowers come to them because they recognise the value of advice, and 31% felt that by offering ease of support and service, it helped to ensure that clients came to them rather than going direct to lenders.
Looking ahead five years, 43% of consumers felt that between 11% and 40% would continue to go direct to lender. 31% of brokers, on the other hand, stated that 90% of all new mortgage business would come from advice via brokers. In the reason for their responses, brokers focused on lender branch closures, consumers growing preference for shopping around, the level of service brokers offered, and improved technology.
Melanie Spencer, head of the MCI mortgage club, said: There continues to be a disconnect between consumer perception and how brokers believe they are positioning themselves in the market. We all know the true value of advice and the reassurance this provides consumers in navigating the congested landscape of solutions that will not only meet the needs of each client today, but also into their futures. However, it is clear that we need to communicate this both more widely and more clearly.