Digital mortgage brokers can help you to get a mortgage almost entirely online. They use sophisticated technology, which should make the process of getting a mortgage quicker and more convenient. How do they work?
Digital mortgage brokers
We’ve looked at four digital mortgage brokers. They are free to use and regulated by the Financial Conduct Authority (FCA):
Burrow are a fintech start-up that launched in 2016.
If you are looking to get a mortgage or to remortgage your home, Burrow can generate a mortgage score and report for you online by asking questions about your income and personal details. The questionnaire takes about 10 minutes and will provide an indication of how easy it is for you to get a mortgage based on your personal circumstances and property criteria. Burrow won’t credit check you.
SAVVY TIP: Burrow say they have done a few buy to let transactions and still can, but it is not a sector they actively promote themselves in.
Once your report has been created, you can schedule an appointment to speak to one of their mortgage experts. They can answer any of your questions and find the best mortgage deal for you. Once you’re in a position to move forward, Burrow will take care of your application from start to finish and keep you informed about how it’s going.
SAVVY TIP: Burrow used to be known as Dwell. It’s a trading name of Dwell Capital Limited, which is an appointed representative of TenetLime Limited, which is authorised and regulated by the FCA. They work with a panel of over 65 lenders through TenetLime.
Cost: Free to consumers, although it takes a fee from lenders. Burrow says the fees they get do not vary much between lenders, so they have no incentive to push one lender’s product over the other.
Trust Pilot rating: 8.8 out of 10
Habito launched in 2016 and they use a mixture of AI (artificial intelligence) and (human) experts to help borrowers secure the best mortgage possible from over 70 lenders.
They are directly authorised and regulated by the FCA and backed by big names including Skype, Pinterest, Twitter and Funding Circle.
Like Burrow, they can help you if you are looking to take out a mortgage or remortgage your home and can also find buy-to let mortgages.
SAVVY TIP: Habito don’t currently have access to some of the big lenders including First Direct, HSBC, the Post Office and Tesco Bank.
It’s AI digital mortgage adviser – or ‘chatbot’ – asks you a few questions including how much you earn, what deposit you have available and what sort of mortgage you are looking for. You can access this from any PC, tablet or smartphone 24/7.
SAVVY TIP: If you’ve experienced a bankruptcy or taken out an individual voluntary arrangement (IVA) in the past, Habito won’t be able to help you.
Once you have answered the chatbot questions, Habito will tell you what your available mortgage options are (but not individual lenders). To get this, you’ll need to provide further information (it should take no more than around 15 minutes).
SAVVY TIP: You can speak to a mortgage expert and if you choose to go ahead with a mortgage, their experts will handle your application and update you from start to finish.
Once you have a mortgage arranged through Habito they’ll continue to monitor the market and if there’s a better deal, will let you know and help you switch.
SAVVY TIP: A credit check only takes place when you apply for an agreement in principle (AIP) with a lender. This tells you how much that particular mortgage lender is willing to lend you, subject to future credit checks and the property valuation. Habito say they will always let you know when that’s going to happen and will make sure that you’re OK with it first.
Cost: Free. Habito get paid for processing your mortgage application by the lenders. This fee is a fraction of a per cent of the value of your mortgage and they say they’ll always tell you exactly what they’re getting paid at the point of your application.
SAVVY TIP: If you refer a friend, you will both receive a £100 cash reward when they successfully complete their application. This offer is unlimited and you don’t have to have a mortgage through them.
Trust Pilot rating: 9.5 out of 10
MortgageGym launched in 2016 and are authorised and regulated by the FCA.
You can use this service if you want to remortgage, move home or if you are a first time buyer.
MortgageGym searches over 15,000 mortgage products. They have partnered with the credit reporting agency Experian to offer a 60 second mortgage matches service. They do a “soft search” credit check, which is not visible to lenders, and is carried out before you can find out which mortgage you can be matched with. They say they can find you up to four mortgage deals that you could likely be accepted for.
Once you’ve seen your mortgage matches, you can choose from their community of MortgageGym Experts who will help you make the decision and apply for your mortgage.
SAVVY TIP: MortgageGym Experts are real people there to help you with your mortgage application from when you make your selection to when your mortgage completes. All experts are carefully vetted, qualified mortgage brokers. To help you choose, they’re all Trust Pilot rated so you can read reviews from customers.
Cost: Free. MortgageGym get paid by MortgageGym Experts who subscribe to their service. MortgageGym Experts get paid by a lender, but only if you decide to go ahead with a mortgage product.
Trust Pilot rating: 7.4 out of 10
Trussle are the UK’s first online mortgage broker. Founded in 2015, Trussle say they have managed over £1 billion worth of mortgages on behalf UK homeowners. Their partners include Zoopla and uSwitch.
FCA authorised, they have access to more than 11,000 mortgage products from over 90 lenders including Santander, Barclays, NatWest, Halifax and Nationwide.
If you are looking to get a mortgage, to re mortgage your home or to get a buy to let mortgage, Trussle can generate an agreement in principle online in less than five minutes (they call it a ‘mortgage in principle’ but it’s the same thing!). You’ll need to provide some financial and personal details to get this.
Trussle can then advise you on the most suitable mortgage, help you to secure the mortgage and manage the process until the day you move into your new home.
Their online service is available 24/7 and you can also talk to an adviser on the phone during working hours or via their preferred method – online chat. This is available online 8am-5pm Monday – Friday and 9am-5pm on Saturdays.
SAVVY TIP: Trussle don’t run a credit check (although the lender will) and say they won’t submit your mortgage application unless they are confident that there’s a very high chance of approval.
Trussle will continue to monitor your mortgage and help you switch to a better deal later on.
Cost: Free. Trussle gets a fee from the lender when you complete on your mortgage.
Trust Pilot rating: 9.4 out of 10
We’d like to hear your thoughts if you’ve had any experience using a digital mortgage broker. Please leave comments below.
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