A recent report has indicated that fewer than 4 in one hundred people looking for a mortgage are eligible for the deals sourced by comparison websites. This highlights the inaccuracy of a number of these comparison sites and signifies just how important it is to seek sound mortgage advice from dedicated professionals.
Research was conducted on searches made by 11,000 potential borrowers that revealed that just 385 (3.5%) would be eligible for the mortgages they are shown.
This is because many of these comparison websites use a simple calculator that performs a basic affordability assessment based on the value of the property, the desired duration of the loan as well as the size of the deposit.
A list of available mortgage deals will then be displayed that fits in with the affordability assessment but we have found that only a tiny number of people will be eligible for these deals once you factor in the individual lender’s additional lending criteria.
Additionally, these calculators do not factor in the current credit profile of the borrower which could affect the lender’s decision to lend later down the line during the application process. As such, these comparison sites should be treated with caution as they cannot offer a truly realistic picture of what is available to the borrower without fulling understanding their circumstances.
An alternative method for checking eligibility for a mortgage would be to use the various online tools that are available on most mainstream lender’s websites. You can use these to gain an understanding of how much you could potentially borrow as well as the range of products that are available to you.
Additionally, some of these tools will even include a search into the prospective borrower’s credit profile meaning that they are better placed to offer a more realistic picture of how much can be borrowed and on what terms.
While some tools are better than others there is no substitute for valuable mortgage advice from an experienced broker. We do not charge a consultation fee so we can help you understand what you can borrow and on what terms by looking at your situation and circumstances in detail. We can then source the best deal in the marketplace and liaise with the lender until a mortgage offer is secured.
We can gather all the information that we require in a short phone call and then on instruction, obtain a mortgage approval on your behalf. Our brokers have years of experience and we pride ourselves on providing a personal and bespoke service.
If you are growing frustrated with inaccurate online tools and calculators then give us a call on 0345 873 1234 or email us at info@specialistmortgages.uk.com and we can help!