Online comparison of mortgage advisers
How do online mortgage consultants work?
Digital mortgage advisors allow you to complete the bulk of the mortgage comparison and application process online, without having to speak to a broker in person or over the phone. Simply submit your mortgage loan details to a chat box, online form or select options in the app.
This process usually takes just 15 minutes, which is much quicker than speaking to a broker or searching for a mortgage loan yourself.
However, you will still have to fill out some paperwork and will need to interact with a human at some point to make sure your application is correct and legally valid.
Can online mortgage advisers prevent over-borrowing?
Although stricter rules have recently been introduced to protect buyers from over-borrowing, they do not provide an absolute guarantee.
Traditionally, a credit affordability assessment is done to determine how much you earn and how much you spend. A live mortgage advisor analyzes your bank statements and takes all expenses into account before recommending a mortgage loan. Whereas an algorithm may not always correctly assess whether you can actually afford the maximum loan amount available for a mortgage.
Nevertheless, online advisors also use their methods. They usually have mortgage experts on their team who analyze credit reports, account statements, and other documents to assess a client's borrowing capacity.
Pros and cons of using an online mortgage counselor
Finding and applying for a mortgage through a chatbot or app can be a convenient option for those who don't have the time, knowledge or confidence to do it themselves.
Benefits of online mortgage counselors
- Flexibility: you can get advice without the need for face-to-face meetings or phone calls, freeing you from the constraints of office hours.
- Minimal paperwork: Online forms replace paper documents that you can fill out at your convenience. Some services will even help with this, minimizing the chances of errors. You'll need to provide documents to prove your identity and financial status, but these can often just be scanned and sent in.
- Fast: The use of technology and algorithms allows you to find suitable mortgage options faster than manual searches.
- Low or no fees: In most cases, advice from online mortgage brokers is free or for a low fee.
Disadvantages of online mortgage counselors
- Limited scope for personalized assessment: Fully automated services may not take into account your unique circumstances, and the cheapest offers won't always be the most suitable.
- Less early support: A good mortgage broker can offer advice on savings and available programs before you're ready to apply for a mortgage. Some online services offer calculators to calculate the possible loan amount, but this is rarely a substitute for full counseling tailored to your personal situation.