If you are connected to the Internet then you are probably familiar with search engines, and finding things you want. Google is probably the best known search engine of them all. Looking for a mortgage online can be as simple as typing “mortgage” into Google.
However, with thousands of mortgages available, you may find yourself overwhelmed with information. How do you choose?
If you end up on the websites of specific lenders (e.g. Halifax or Nationwide) then you will only be told about their own products. You could do that for every major lender, but it would probably take you all day, you’d be writing down everything you find, and when you’ve reached number four, there will be something there that prompts you to go back and look again at the first three! How frustrating and what a waste of time.
It is much better to find yourself a mortgage broker and, even better, one that is independent and can offer mortgages from the whole of the market.
When you’re trying to find a mortgage online, you are unlikely to reach a final conclusion and come away with a mortgage in your pocket. When researching a mortgage online you are more likely to reach a better understanding of the mortgage market, find out some of the deals that are out there, what current types of mortgage are available and, by filling in various mortgage calculators, work out how much you can afford in repayments and therefore how much you can borrow.
Although when you look for a mortgage online you will probably come across various mortgage comparison websites, there is really no better option that talking to a mortgage broker about your own personal circumstances. No amount of interaction with the Internet will tell it all it needs to know or tell you all you need to know.
Those people giving mortgage advice – mortgage brokers, mortgage advisors – are regulated by the Financial Services Authority and are held to a code of practice. You also, must give them accurate information about your circumstances and your credit history.
When you are doing your research for a mortgage online you would do well to look for such things as redemption penalties (how much would it cost you to pay off your mortgage before the deal period is over?), the period of the deal (assuming you go for a deal i.e. a lower rate of interest in some way than the normal standard variable rate), the fees to get the mortgage (arrangement fee, booking fee, reservation fee), and whether you need a perfect credit record to get the mortgage.
When you’re looking for a mortgage online, you can get some indicators about these items, but you will be much better off talking to an adviser with whom you can have a dialogue and discuss your personal situation.
Nevertheless, beginning your search for a mortgage online is a good way to start and will give you some very important clues as to which way you should go with your mortgage when you discuss it for real.
