Borrowers applying directly to a mortgage lender could save as much as £880, as many lenders continue to reserve the most competitive deals for those not using a mortgage broker, according to mform.
The best three-year fixed-rate deal available last week – ranked on a true cost basis – was Nationwide’s 5.74%, which is not available through mortgage brokers. However, the best three-year deal generally available to brokers came from Nottingham Building Society at 6.79%, ranked only 51 out of 100 by mform for overall competitiveness.
According to the online mortgage company, borrowers taking out a £150,000 mortgage with the Nationwide deal would pay £38,480 over three years compared to £41,118 with Nottingham Building Society, resulting in a difference of £2,638, amounting to £879 per year.
Mform’s research also found that broker-only mortgages often come with higher start-up fees, although sometimes such deals can come with lower initial rates.
Francis Ghiloni, marketing and business development director at mform, says: “Consumers need to search the market as the lenders with the best deals change from week to week. Brokers let the consumers see plenty of options but, unfortunately at the moment, those offers are not always the most competitive.”
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