Applying for a mortgage has always followed the same pattern historically. The first route is a consumer going to a mortgage broker who looks at their financial situation and then compares best products from lenders and said broker then takes a small fee for their hard work. They also carry out the mortgage application process acting as a third party. The other route is a customer visiting a bank directly to discuss their mortgage products and applies to the bank directly. Now however there is another option for consumers.
Most people these days control their finances online and rarely visit their local bank. With the emergence of fintech within the mortgage market, instead of going through the lengthy process of meetings with banks and mortgage brokers, consumers can now enter all their details into an online mortgage platform which then views all mortgage products against the customer’s criteria before making a recommendation on the product which will suit the consumers circumstance. Consumers can then purchase the mortgage product through the mortgage platform, therefore offering a full end to end solution.
The Times discuss how mortgage broker service Dashly have changed the way that consumers purchase mortgages using their platform. Customers are able to upload their documents and details on their current mortgages securely onto the online platform, which then carries out searches twice a day to let customers know of any deals that they may be eligible for. This means that customers can take control of their mortgage and be proactive to ensure that they are receiving the best interest rates.
This service is particularly helpful in making sure that customers do not slip into Standard Variable Rates (SVR) with banks at the end of their fixed term. Many people fix their mortgage for a number of years and then forget to renew their mortgage and fix their rates again, which can be extremely costly. The Financial Times claim by using an online mortgage broker service, consumers could save up to £4,500 a year solely by avoiding slipping into SVR due to the reminders from such services.
By giving consumers better clarity of the mortgage market directly, Fintech businesses are taking some of the control away from banks and allowing customers to be more in control. Online mortgage systems are taking the stress and hassle out of applying for mortgages by providing an end to end solution that then continues to work for you in the background without any fees. It is clear to see that Fintech has finally pushed the mortgage market into the 21st century and is changing the way we can apply for mortgages for the better.