Compare Mortgage Rates in the UK
If you want to compare mortgage rates in the UK, you have 2 choices: do it yourself using a mortgage comparison website or use the services of a mortgage broker. Here we look at some of the advantages and disadvantages of using a mortgage comparison website.
The great thing about using a mortgage comparison site is that you can do everything from the comfort of your own home. You can research the market, compare different products and even apply for a product all using your home PC. This is great if you are comfortable using a computer and have some knowledge about financial products. It's a good idea to familiarize yourself with terms such as fixed rate, standard variable rate, discount rate, APR etc.
Another benefit is that you do not have to pay a broker's fee. Many mortgage brokers charge a fee to help you find the correct mortgage for you. This doesn't apply if you are using an online comparison site. But the site does make some money if you take a mortgage out through them. They receive a commission directly from the lender.
So are there any downsides to using a website to compare mortgage rates in the UK? One thing that you will miss out on is the specialist knowledge. If your circumstances are unusual it maybe better to go to a broker that has some experience of knowing which lenders to choose. For instance if your income is variable because you started your own business 18 months ago would you know which banks to approach? If you've had some credit problems in the past such as CCJ's, then there are mortgages out there but the different criteria for each lender varies. This is an area where a specialist broker can be worth their weight in gold, because they know the different requirements for each lender.