The potential value of the services offered by brokers is being acknowledged by first-time buyers on a more widespread basis than ever before. That is according to the latest figures from Aldermore Bank, which indicate that one in every two first-time buyers is now using the services of an independent broker.
Specifically, the data published by Aldermore Bank suggests that 48% of first-time buyers were applying for mortgages with the help of a broker during March this year. One year earlier, just 18% of prospective first-time buyers said they were using the services of brokers.
In addition, a further 19% of those polled stated their intention to work with a broker at some point in the near future.
An impressive 98% of those who used the services of brokers to assist with the purchases of their first homes said that the service they received was useful.
Affordability checks and objective recommendations
Motivations for working with brokers were relatively consistent among those who took part in the survey. Aldermore Bank reported that 55% of first-time buyers contacted brokers for help finding affordable mortgages from recommended providers, while at the same time assessing affordability based on the applicant’s financial circumstances.
In addition, 54% stated that the brokers they worked with assisted with the application process and general paperwork, while 37% said they found out important information via their broker they were not previously aware of. 35% also stated that the broker they worked with recommended specific mortgages or other options, helping them make the right decision and subsequently take their first step on the property ladder.
In total, around one in three first-time buyers using brokers said it was invaluable to have an expert explain the property purchase process in clear and simple terms.
A lifeline for first-time buyers
Commenting on the findings, the head of mortgage distribution at Aldermore, Jon Cooper, said that independent brokers have been providing first-time buyers with particularly valuable help and advice in the current economic climate.
“Brokers have been a life raft for first-time buyers in a sea of increasing challenges and worsening conditions during the COVID-19 pandemic,” he said.
“Buying a property can be a very daunting experience, but brokers have been vital to first-time buyers for the past twelve months in assisting them to navigate through this period of uncertainty.”
“The much-needed expertise and guidance they have provided really shows how crucial the role of the broker is in today’s housing environment, and it’s very encouraging that their services have been found to be universally beneficial.”
Meanwhile, additional data published by Aldermore this month highlighted a significant increase in the number of rejected mortgage applications from first-time buyers over the course of the past 12 months.
In March 2021, more than 80% of first-time buyers said their application had been declined by at least one lender, significantly up from the 53% recorded during the same month last year.