Direct-only mortgages 'on the increase'

Date:Friday 30th April 2010
Author: Max Freedman

Direct-only mortgages are becoming increasingly popular with British consumers, according to a new study.

Research conducted by independent firm Defaqto has revealed that direct-only agreements, usually obtained through applications from prospective borrowers straight to lenders, now comprise over half of the UK market.

Defaqto insight analyst Kevin Bray claimed the shift had left mortgage brokers "at a disadvantage" and warned customers: "Consumers need to ensure that the broker they are using will advise them of the best deals."

According to the organisation, direct-only deals accounted for just 22 per cent of mortgage products on offer in 2007, but have rocketed in the last three years to a share of 53.7 per cent.

In March, Defaqto found only 102 of the 307 cash Isas available offered rates of over three per cent, while some imposed punitive charges for withdrawals and forced customers to fix savings for a minimum of three years.