First-time buyer’s demand for mortgage brokers remains high as they value emotional support as well as financial savings, a report from Santander has suggested.
Santander’s latest broker perception barometer found 63 per cent of borrowers admit they could not have gone through the homebuying process without the support of a broker.
Some 73 per cent of those who bought, remortgaged, or took out a product transfer in the last year saved money as a direct result of working with a broker.
The average first-time buyer saved £123 a month on their monthly payments, only slightly less than the overall average savings of £127.
However, the research also found that, for first-time buyers, saving money was not their primary motivation with only 23 per cent stating it was at the forefront of their mind when working with a broker.
This is compared to 35 per cent of second-time buyers and 39 per cent of third-time buyers who report prioritising finances.
Instead, 28 per cent of first-time buyers said they place more value on their broker saving them time, while 24 per cent said they placed value on brokers helping them understand complex information.
Santander UK head of intermediary channels, Graham Sellar, said: “During a time of global economic uncertainty, more than ever, borrowers look for guidance and a sense of security that they are getting the best possible outcome for their mortgage needs.
“Brokers play a hugely vital role in this — not only by securing the best deals and saving homeowners money — but providing reassurance and emotional support too.”
New expectations
The barometer pointed out that the next generation of buyers have new expectations of brokers, specifically in their pace of communication.
Santander reported that 75 per cent of those aged 18 to 34 years old consider their broker as “responsive”, compared to 90 per cent of those aged 35 years and above.
The younger generation were also most likely to have found their broker using social media or an AI tool and are most likely to communicate with their broker using Whatsapp at least once a week.
In comparison, 50 per cent of their older peers claimed they have never used the messaging app to contact their broker.
When asked who they turned to the most during the homebuying journey, 24 per cent of first-time buyers admit to speaking to their mortgage broker more than their friends when seeking support with the process.
tom.dunstan@ft.com
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