49% Of Mortgage Borrowers Believe They Will Access Better Interest Rates By Paying A Mortgage Broker

NORWICH, U.K. - May 16, 2023 - PRLog -- New independent research conducted on behalf of Boon Brokers, a fee-free mortgage and equity release brokerage, questioned 1,000 mortgage borrowers across the U.K on the topic of mortgage broker fees in the industry.

Does Paying a Broker Fee Result in a Better Interest Rate?

Boon Brokers found that almost half (49.4%) of mortgage borrowers between the age of 18 and 24 believe that they will have access to a better interest rate if they pay a broker fee. Just over a third (33.5%) of mortgage borrowers between the ages of 25 and 34 share this belief. The older the borrower, the less likely they are to take this view. Just 6.7% of mortgage borrowers over the age of 65 agree.

The data differs significantly when filtered by the city of the respondent. In England, Manchester has the highest percentage of respondents sharing this view– at 46.3%. This falls to 34.4.% in Bristol, 34.2% in London, 31.4% in Nottingham, 25% in Leeds and 25% in Norwich.

Will Paying a Mortgage Broker Fee Result in a Better Service?

Almost a fifth of respondents (18.2%) are aware that fee-free mortgage brokers exist but believe they will receive a better service from mortgage brokers that charge a fee.

The younger the borrower, the more likely they are to believe that paying a broker fee will result in a better service. At the extreme ends of the data, this view is shared by 28.6% of mortgage borrowers between ages 18 and 24 compared to just 3.3% of those over the age of 65.

There is a significant difference in the research on the topic depending on the location of the borrower. Glasgow, Belfast and Manchester have the highest percentage of respondents that share this view, at 24.4%, 22.2% and 23.1% respectively, compared to just 9.4% in Bristol and 10% in Sheffield.

Do You Have to Pay a Mortgage Broker Fee?

Boon Brokers found that many mortgage borrowers believe that they must pay a fee to use a broker service.

Over a tenth (14.3%) of mortgage borrowers questioned are unaware that some mortgage brokers do not charge a broker fee. Once again, the data shows that younger mortgage borrowers are more likely to make less informed decisions than older borrowers due to their lack of understanding of the industry. Considering the UK's cost of living crisis, most mortgage borrowers will be seeking means to cut their expenses to maintain their living standards.

For more information visit www.boonbrokers.co.uk