The findings reveal that 23 per cent of first-time buyers used their relatives and friends as a primary source of information compared to 13 per cent who relied on mortgage brokers.
However, there is a growing trend of first time buyers turning to brokers. 28 per cent of 25-34 year olds said they used a broker for mortgage advice when they bought their first house, compared to only two per cent of older homeowners aged 65+.
Indeed, nearly as many homeowners between the age of 25 and 34 turned to brokers over banks and building societies (29 per cent) indicating a desire by young first-time buyers to seek out professional independent advice when taking out their first mortgage.
Ricky Okey, managing director of Abbey for Intermediaries, said: “The results show some promising signs for the future with a shifting attitude of young first-time buyers who are waking up to the benefits of seeking advice from intermediaries. 13 per cent of first-time buyers used a broker for advice suggesting brokers have a great opportunity to engage with them, something Abbey’s first time buyer range of products can help develop”.
“Brokers are becoming an increasingly important part of first-time buyer’s decision making process thanks to service and cost improvements as well as being able to offer a broader product range. By developing these areas further, brokers can build on this changing attitude to become a positive driving force in the first-time buyer market.
“However, lenders and borrowers must not rest on their laurels. Abbey for Intermediaries remains committed to supporting mortgage brokers and their clients and we will be looking to capitalise on the substantial improvements made to our service in 2006 and the first half of 2007.”
Abbey for Intermediaries (AFI) is expecting to develop its intermediary offering further in 2007 to help brokers appeal to more first-time buyers. Last year saw AFI develop a significant number of broker service improvements including:
- A Mortgage Application Tracking System
- Automated valuations for those looking to remortgage their property
- Fast Track available for cases up to 85 per cent LTV and £1,000,000
- Quicker property valuations instructed on the day the application is received for remortgage cases
- Instant mortgage decisions at Agreement in Principle and Full Mortgage Application stages meaning quicker and more accurate processing
- The introduction of 100 per cent mortgages
