Why people turn to TikTok for mortgage help

Did you get an air fryer for Christmas and are now on the lookout for help with what you can cook in it? TikTok can help with that.

Or maybe you gave into the hype and got the latest Dyson hairdryer and need some guidance on how to use it properly – TikTok can help with that.

What about if you are looking to buy your first house and have some questions about rates or even whether you need a mortgage broker, can TikTok help with that?

Well, it turns out it can.

There is a handy feature on the social media platform where users can ‘go live’ and livestream to anyone that lands on their page as well as their followers.

This allows the host to talk directly to the audience and answer any questions or interact with the comments that feed through to their page.

Questions from buyers flooded in and focused on rates, first-time buyers and remortgages.

Most commonly the live sessions I have stumbled upon have been 'TikTok celebrities' answering questions from their adoring fans or the latest Love Islander commenting on what life was like in the villa.

But I must admit I certainly had a shock when a mortgage broker popped onto my phone screen.

Now, while brokers are a huge focus in my work life, I don’t tend to look up mortgages in my spare time at 7pm at night, but yet here was TikTok telling me to join this mortgage broker live.

And curiosity got the better of me.

The ‘new kind’ of broker

One broker I saw had 2,400 likes and on a Monday evening had 460 people watching at one time.

Questions from buyers flooded in and focused on rates, first-time buyers and remortgages.

For example, one person asked if they could still get a mortgage even if they were on a zero-hour contract, while another questioned whether they could leave their mortgage early for a cheaper deal.

But some questions even focused on brokers themselves.

One user asked what were the benefits of using a mortgage broker?

The host answering these questions explained that a broker does the research and assessment on behalf of a client and then finds the cheapest and best lender for that person’s circumstances.

He explained that brokers liaise with solicitors and estate agents and take the stress out of the home-buying process, with them ultimately giving the client advice because they are qualified to do so.

Over the past week I have noticed there are a few mortgage brokers jumping on livestreams and answering people’s burning questions, but why are people turning to social media for help with mortgages?

The appeal of social media

Firstly, livestreams are easy to access. A person could be on the sofa in front of the TV or out walking the dog, they can easily open the TikTok app and get the information they are looking for.

Secondly, you can be anonymous on social media. We all get told ‘there is no such thing as a stupid question’, yet as humans we find it easier to ask for help when it is not face to face.

On TikTok you can be a random user, which could mean people find it easier to ask those burning questions.

And while the brokers state that what they are saying does not constitute advice and is only guidance, people are getting information for free.

The information from the brokers is not personalised and only speaks about the mortgage market in a generic sense, but still people feel as though they are getting a better understanding of how the industry operates and what they should take into consideration.

If by doing this more people are becoming educated about mortgages, as well as showing an interest in their finances, then I believe all in all it is a pretty good idea.

Especially if these brokers are appealing to the younger generation.

However, nothing comes without its risks and so people should take caution when getting guidance from social media and speak to a broker in real life when looking to buy a house.

Either way it looks like there is a new kind of broker coming to the forefront. One which is social media savvy, appeals to younger clients and encourages financial literacy. None of which is a bad thing. 

2024 could really be the dawn of the TikTok mortgage broker.

Amy Austin is news editor of FTAdviser

amy.austin@ft.com