Borrowers could save money by using a broker

Borrowers could save up to £1,830 per year if they went to a mortgage broker instead of going direct to a lender, according to the Association of Mortgage Intermediaries (AMI).

The figure reflects the difference between the average cost of a Standard Variable Rate (SVR) mortgage – most frequently offered by lenders – compared to a fixed rate, which is the most popular choice offered by mortgage brokers or intermediaries.

According to AMI, the average annual saving achieved from getting a mortgage through a broker is £962 per annum. With just under 1.36 million intermediary mortgage sales in the 2006/07 financial year, the savings achieved by brokers for their clients amounts to between £1bn and £1.2bn per year.

Chris Cummings, director general of AMI, said: "Intermediaries are able to identify the most suitable product for the consumer at a competitive price. Independent research suggests intermediaries could save consumers £1,830 per year compared with going direct to lenders. In these difficult times it is more important than ever for consumers to access good financial advice.”