First time buyers are now more likely to turn to a mortgage broker for loan advice than to their parents, but not if they have to pay, according to recent research.
Mortgage broker, Mortgage Choice, found that 26 per cent of new buyers said that a mortgage broker is a preferred main source of advice, compared to 20 per cent who pointed to their parents.
A further 11 per cent pointed to online loan comparison websites, while just seven per cent relied on financial planners. In 2011, just four per cent opted to use comparison websites.
However, there were mixed results in terms of whether first time buyers would actually use the services, with 55 per cent saying ‘maybe’ and 32 per cent saying ‘yes’ to using a mortgage broker to finance their first purchase.
This dropped to 51 per cent saying they would not use the services if they had to pay for them.
Mortgage Choice’s CEO, Michael Russell, said that this is an indication of new buyers valuing the guidance of mortgage brokers.
“Parents are an excellent starting point for general advice about purchasing a property but with the mortgage market constantly changing, it is crucial that borrowers, particularly those who are less experienced, seek expert assistance to ensure they’re getting a loan suited to their needs," said Mr Russell.
The survey asked 1,000 first time buyers about their chosen source of advice.