A survey by the Consumers' Association of Ireland (CAI) has found that more than 85 per cent of mortgage intermediaries act on behalf of just a handful of lenders.
Mortgage intermediaries arrange home loans for buyers on behalf of financial institutions. They also give mortgage advice, often advertising and promoting this as independent, the CAI states.
There are some 900 individuals and firms authorised to work as mortgage brokers. Almost 50 per cent of these represent just one or two lenders, out of a market total of 14. The CAI estimates that one in four mortgage intermediaries are tied agents, representing one lender. Around 40 per cent act on behalf of three, four or five lenders.
Mortgage brokers earn commission from lenders, usually ranging from 0.5 to 1 per cent of the loan. The intermediaries are not legally required to tell consumers what commission they are paid.
The full report on mortgage intermediaries is published in this month's Consumer Choice magazine. The contact details to subscribe to the CAI's monthly magazine are as follows: Consumer Choice, Subscription Department, 45 Upper Mount Street, Dublin 2. Tel: 01-6686836.
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