Mortgage Brokers Once Again Show Their Value

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New data has found that after nearly two years, mortgage products are once again truly cheaper through a mortgage broker than directly through the lender.

After the banking crisis took hold, lenders opted to concentrate on branch business in a move directly to control the volumes of new mortgage approvals. This meant that people going to a mortgage broker soon found that they could get a mortgage cheaper if they simply walked into their local bank or building society.

This so called 'dual mortgage pricing' become a headache for both brokers and borrowers, especially those who favoured the added value service offered by a financial adviser, such as those with extra ordinary or multiple income streams.

But for the first time in the last two years, brokers are finally getting back to a level playing field. Moneyfacts.co.uk has found that average rates on two year and five year trackers as well two year trackers are cheaper through a broker than through branches directly.

Darren Cook, analyst for Moneyfacts says: "Like many others, mortgage brokers have probably felt one of the biggest impacts of the banking crisis and they have also had to deal with an added frustration of dual pricing.

"The proportion of the market that brokers have access to may have fallen, but it looks like they are starting to compete evenly on price. Brokers always have and always will form an integral part of a healthy mortgage market, so we hope that dual pricing fades away soon and we return to a level playing field as quickly as possible."

Brokers like The Mortgage Broker have been frustrated these two years because they could not always offer their clients the best mortgage rates even though they could offer so much more such as financial advice, insurance and loan advice. But now things are changing and people can once again be sure that the very best place to go for a mortgage is through a broker.

SOURCE: Moneyfacts, 29/01/10

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