Price comparison sites vs real life brokers
Director of mortgages and finance for Bradley Hall, Lewis Chambers, discusses the benefits of choosing a mortgage broker rather than an online comparison site.
Since the growth of financial price comparison sites many people have been replacing real life financial advisors with an online version. Now the credit scoring agencies are taking over and competing, Experian, Clear Score and others are offering a credit match product guiding you into what could very well be the wrong deal.
Although there are, of course, many financial products which can easily lend themselves to being compared; such as home insurance and savings accounts, this is not necessarily the case when it comes to the more complex financial products such as mortgages. Opting to compare mortgage deals via a price comparison site and then going direct to the lender may end up being more complicated than you may have first imagined – not to mention it could very easily cost you more.
When it comes to arranging a mortgage you have two options available; find your own mortgage and applying direct or using a mortgage broker.
As a mortgage is the biggest financial commitment you will likely ever make, it is imperative to ensure that you are getting the mortgage which is exactly right for your personal circumstances. Factors that need to be considered include the initial interest rate, any introductory offers, the rate beyond the fixed period and potential product fees. It is easy to use a price comparison table to find the cheapest current rate on the market, you may apply to a particularly attractive looking deal without realising that there are specific criteria for the deal that you do not actually meet.
Although you can complete background research online you will not be able to acquire the amount of specialist knowledge which comes through experience and working with mortgage applications on a daily basis. Even the most straight forward mortgage application could benefit from expert mortgage broker.
Information provided by price comparison sites focuses on the cost of the mortgage products and it is difficult for these platforms to consider any of your personal circumstances in order to find a deal that suits.
Although you may have an idea on how much you can afford every month, a mortgage lender may not agree. Stricter mortgage lending and home buying schemes such as the Help to Buy scheme come with affordability criteria that needs to be met. We can reduce the chances of you getting rejected by mortgage lenders by assessing your affordability prior to making an application and applying to the products which are right for you.
Home Buying Schemes
Current government home buying schemes such as Help to Buy, Shared Ownership, and existing schemes means there are lots of options available for first time, and second time buyers which may not be available through price comparison sites.
A price comparison site doesn’t understand how credit scoring can best match you to the most suitable mortgage. Although some of the credit providers are starting to get into this market, they can’t account for what fits with each and every lenders criteria. Perhaps a mobile phone blip or missed payments on credit cards, price comparison sites will still guide you to the lenders, you may apply direct, undertaking a credit check, resulting in points being deducted to only be refused. A broker has knowledge and can give advice based on your credit history and circumstances.
Mortgage brokers have access to an array of intermediary only deals which are only available to those applying for a mortgage using a mortgage broker, these will not be displayed on a price comparison site. On top of this, here at Bradley Hall we have negotiated a selection of exclusive deals for our clients.
Although there are mortgage deals available for those who are direct applicants only, these are not necessarily going to save you more money than the other deals on the market and it’s important not to miss out.
Full Home Buying Service
If you go direct you will then need to make the applications and handle all of the paperwork yourself. This can be a complicated process, especially for first time buyers who aren’t aware of the ins and outs of arranging a mortgage and buying a home. We offer a full home buying service, this involves handling the process from start to finish, dealing with any solicitors and surveyors, this complete service is something that the price comparison site cannot offer you.
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