The need for convenience in modern day Britain is high with people becoming dependent on technology to speed up everyday tasks so that more tasks can be squeezed into each day. Banks and building societies are quick at adapting to market needs and provide services such as online banking and mobile apps. If you are looking for a mortgage there are now a range of different ways you can apply, we look at how to ensure you get the best mortgage rate and service available.
The Time Vacuum of High Street Lenders
Obtaining a mortgage the classic way is a time-consuming process. Most high street lenders still demand that you either book a lengthy 2-4 hour appointment to see someone, either face-to-face or over the phone.
This often creates a nightmare of juggling time off work or spending precious time at the weekend sitting in a windowless room watching the adviser fill in the application for you. Attending one (and sometimes two) of these appointments during the week, or on the weekend where availability is sparse, is nigh on impossible.
The reason many people prefer to speak to an adviser in person is that they can ask questions and have confidence that all the paperwork has been completed accurately. However, visiting a high street lender means you are tied to getting your mortgage from that provider. This relies on your own research to ensure you have chosen the best provider for your situation.
Tackling the Online Mortgage Application
If you work long anti-social hours then the online mortgage application can look very appealing. You can fill it in when it suits you and know that everything can be confirmed by email. However, it does have its drawbacks; when completing an online mortgage application, the onus is on the applicant to double check all the details are correct.
The online lenders are fully aware of this responsibility and will post warnings at every step of the way. One click of a mouse confirms that you understand the risks and that you fully understand what you are doing. As with Apple’s terms and conditions, many people click the accept button without reading the full document or understanding the jargon (i.e. product type, lender criteria, term length, charges involved, LTV, ERCs, exact loan amount).
By posting regular warnings the lender is essentially protecting themselves from user mistakes – there is no going back once a mortgage completes, that’s it. This is known in the industry as ‘execution only’.
The Best of Both Worlds
So, if visiting a high street lender is time-consuming and restrictive, online mortgages are quicker but risky, how can you ensure you get the best mortgage rate and service available?
Sometimes the most obvious solution is the best, pick up your telephone and call an Independent Mortgage Adviser! Being independent means the adviser can do all the research for you, you don’t have to spend hours on the internet looking through mortgage rates and translating the terms and conditions into plain English. Your adviser will talk you through each step of the mortgage process and answer any questions you may have.
A phone call can be booked in for a time that suits you (e.g. during your lunch break or after working hours) and generally last no longer than 20 minutes. You will be asked questions about your financial situation and the type of mortgage you are looking for. Your Adviser will then carry out research to find what options are available to you and contact you with the results. Once you have agreed on the most suitable mortgage the Adviser will process all the paperwork and work with your Solicitor and Estate Agent.
Ben, our Independent Mortgage Adviser comments…
A mortgage is likely to be the single, most expensive debt you are ever likely to take on. With a responsibility to pay all this money back, it is vital that it has been set up properly and you as the consumer are fully aware of what you are getting yourself into. Having a professional to guide you through the mortgage process provides confidence in your decision.
If you would like more information or to discuss your mortgage requirements contact us on 01329 282882.