New research carried out by Mortgage Broker Tools (MBT) shows that the most affordable mortgage loans on offer do not come from the big lenders in the clear majority of cases.
This research saw MBT analyse information it had drawn from thousands of mortgage deals that went through its affordability calculator. The results showed that in 73% of these cases – which amounts to three quarters of them – the most affordable mortgage options came from lenders that were not part of UK Finance’s top 10 list.
Furthermore, in a total of 7% of the mortgage cases analysed by MBT, it was only these smaller, less well-known lenders that had a product on offer that met the size of mortgage loan preferred by the borrower.
This presents a problem, as the research also shows that, at present, many advisors are not doing in-depth enough lender searches to find these loans. This leaves some borrowers being stuck with loans that are less than they really require. A survey of advisors conducted recently found that 58% of them hardly ever use affordability calculators not provided by top 10 mortgage lenders.
MBT CEO Tanya Toumadj told Financial Reporter that:
“Often the best option is not found in the most obvious place and brokers who confine their research to the top 10 lenders risk missing out on the most suitable choice for their client.”
Those who undertake online CeMAP courses, as well as physical ones, are learning the detailed research skills that make a good mortgage advisor from the start.