Buy-to-let
The surge in the popularity of internet shopping over the past few years has never been confined to music downloads, last-minute birthday presents or holidays. An increasing number of people are buying their mortgages online.
In 2004 just 3 per cent of people bought their mortgages over the web, although this figure is expected to soar as online processes become more sophisticated. Some choose to buy direct from a lender website, although not all will allow you to finish the deal online.
There are also websites that list mortgages and will help you sort through the thousands of products out there, but many of these are affiliated to particular lenders or mortgage brokers. Some sites will also offer insurance products such as mortgage payment protection insurance (MPPI). Other key parts of the house buying process are also available online, including online conveyancing.
Shop around
However, as your mortgage is likely to be the biggest purchase you will ever make, it makes sense to shop around carefully. Many borrowers still feel most comfortable choosing a mortgage through a qualified broker, most of whom have a website. The quality of these websites will vary hugely, though.
Research from web usability company Foolproof found that, despite using the internet as part of their mortgage shopping process, more than half (55 per cent) of online shoppers still want to talk to a broker, and 45 per cent visit a lenders branch, before making a decision.
Tom Wood, managing partner of Foolproof, believes that as websites become increasingly sophisticated, more borrowers will be willing to complete the entire mortgage-buying process online. Currently, the paucity of really good, informative mortgage websites means that people are going back to brokers because there is little online alternative, he says. As websites improve, shoppers will have better online options.
What to look for
Lender websites only showcase their own mortgages, so we looked at mortgage advisers sites to view the whole market. So, what can you you find on a mortgage brokers website? Well written, simple information, such as clear explanations of what a mortgage is, what the different types of mortgages available are and what redemption penalties are, is invaluable.
The brokers contact details should be very clear, with a phone number visible on the web page. This way you always have a point of human contact if staring at a screen becomes too impersonal.
Other useful tools to look out for include a sourcing system to help you search through the products available. A mortgage calculator will allow you to crunch the numbers, compare different products, and work out if that mortgage is affordable for you, plus what your monthly repayments are likely to be.
There is a bewildering choice out there type online mortgage broker into the UK pages of search engine Google and you will bring up over a million websites. Many of these will be money supermarkets sites that pass your details on to brokers, and that are unlikely to have much useful information. Just some of the broker sites allow you to apply and complete online, but many offer excellent research tools. Many wont offer you all the information you need to make a final decision, so its worth browsing a few.
Given the size of the financial commitment you are taking on, it is perhaps no bad thing that in most cases you end up speaking to a real person. Overleaf we look at some of the most popular websites.
MoneySupermarket
This is not a broker site but rather, as it says on the tin, a money supermarket, which assesses your basic needs and passes on your details to its affiliate brokers. It comes up so frequently in online mortgage searches that it merits an examination here.
The site has an excellent search tool, which is easy to use and which brings up a manageable number of insurance and mortgage options for you to compare. If you want to apply, you can click a button and be patched through to the lenders website. Proceeding this way does not put you in touch with a broker for advice, but as a comparison tool it works well. Alternatively you can ask to be contacted by a broker from one of Moneysupermarkets member firms.
The site contains a decent guide to mortgage types, plus a limited glossary. You can also send off for a free mortgage factsheet. The site allows you to search for home insurance and mortgage payment protection products under its mortgage section, as well as other personal finance products, including motor insurance and mobile phone packages, on the wider site. This is a fairly straightforward way of shopping for finance and as a research tool is certainly worth a look if you would like to arm yourself with information before approaching a broker or lender in person.
John Charcol
John Charcol is one of the UKs most well-known mortgage and financial advisers, and was one of the first to offer an online service. Its years of experience ensure that it appears at the top of our Google search. Unusually, you can complete the entire mortgage process online, or pay a flat fee of £199 to speak to an adviser over the phone after browsing your options.
After a revamp last year the site looks very attractive, but has too many options on its home page so looks a little cluttered. However, it is well worth getting past this to discover what is in fact an easy-to-use site with a wealth of information.
The first thing you see is Charcols current top five best-buy products, as well as a mortgage search tool and an affordability calculator.
Further into the site you can access some detailed fact sheets explaining the different types of mortgage available and advice about the application process. This is well written, with an intuitive index. Other useful editorial includes frequently asked questions (FAQs) and a glossary of financial terms.
The main menu stays at the top of the screen at all times, so navigating the site is very straightforward. Much of the information on the site is freely accessible, but in order to search for a mortgage product you have to sign up and provide full personal details. Once you do this you can also access the companys life assurance products.
London & Country Mortgages
London & Country Mortgages site sets a cheery welcoming tone as soon as you log on, and provides a reassuring amount of information to the nervous borrower. The mortgage home page is well laid out and its thoughtful structure ensures that you consider all the implications of taking on a mortgage. Yet again you cannot complete online, but there is plenty of useful, searchable material to get you started before you set up a meeting with a real person, including a solid set of calculators.
This site is particularly useful for first-time buyers as it explains some of the nitty-gritty about the mortgage process, such as extended penalties and the difference a decent deposit can make, which more experienced borrowers might take for granted.
A particularly nice touch is the case study section, where you can read how real borrowers in a range of different situations went about getting a mortgage. While the broker is hardly going to feature any problematic cases, these are a useful way for first-time buyers in particular to get to grips with the process.
Contact details are prominently displayed at all times along with the brokers key selling point the fact that it doesnt charge a fee. The site has a topic search facility that really does work, something that many sites lack, helping you to find the right information in what is in any case an intuitive and well designed site.
Find a best-buy mortgage here.
