The HBSI uses the Council of Mortgage Lenders’ published figures for the average property values for first and second time buyers, together with whole-of-market product information from Defaqto. In addition to the proportion of products made available by lenders via intermediaries, the HBSI shows the difference in cost to the borrower between the cheapest intermediary and the cheapest direct product. Currently, direct-to-lender products are up to £4843 cheaper for the borrower over two years (equivalent to £201.79 per month) than the broker-distributed equivalents. (The example quoted refers to remortgage products up to 80% LTV)
Richard Angliss, managing director of Home Buyer Systems, commented: “The withdrawal of Bank of Ireland and Bristol & West from the intermediary market has resulted in even fewer products available to intermediaries, whereas direct-to-lender products continue to be both more widely available and consistently cheaper for borrowers than the intermediary products in the market. The Home Buyer Sourcing Index is designed to provide accurate, up-to-date, generic information for brokers and their customers, and it enables brokers to arrange the direct-to-lender product for the borrower (if so desired), and charge a pre-agreed fee for their research and administration.
“This in turn enables brokers to retain the customers for their insurance business, and offer them a choice of insurers, whereas dealing direct with lenders often means that a very limited choice of insurance providers is offered.”
David Black, principal consultant for banking at independent financial research firm Defaqto said: “In these times of financial restraint it is vitally important that consumers have access to the best available deals.”
