Direct rates offered through lender portals can be costly?

What examples of this can be seen?

Rates offered directly through lender portals can be 0.20% to 0.50% higher than those available through brokers for the very same lenders. This is known as Lender Dual Pricing.

Based on this, using a broker is the best option. However, if the broker charges a fee, the saving made by the client is reduced, or even swallowed up completely. Here at Euxton Mortgage Market, we do not charge a fee, therefore it is plain to see that using us is the best way to ensure that those savings are retained by the client.

We are not aware of any disclaimers or indication on lender websites to highlight that the client might not be being shown the full picture, therefore it would be easy to assume that what you are shown are all of the products available from that institution.

Lenders simply roll with this, presumably on the basis that if they’re not being questioned, there’s no need to explain. It’s about profit for them.

Even where the rates on offer are the same, whether applying directly or through a broker, there is no question that a mortgage seeker will still be better off using a broker, like Euxton Mortgage Market, as we do all of the legwork and paperwork, as well as being liable for our own advice.

So, a little like the wider retail market, the trend for the convenience of going online actually creates lower overheads for the provider and basically increases their profits without them having to take greater responsibility.

Websites and portals are fantastic tools. We are not suggesting for one moment that you shouldn’t glean as much information as you can from them, they can give you a great indication of what is going on in the mortgage market. However, mortgages are not only the greatest financial commitment you are likely to take on or have, there is no one-size-fits-all solution. It is for this reason that mortgage advisers exist.

We are always happy to advise you on any deals you have seen and outline how they may work for you, however we will also be able to tell you if you can get a better deal. So, if you are due to refinance and are thinking of just going to your existing lender, then why not talk to us first. We can get you the best deal, with no fees and full advice and admin support.

March 2020