Why are mortgages not on comparison sites? (3 minute read)

Why are mortgages not on comparison websites?

As Mortgage brokers, one thing we see a lot of is customers asking for a quote for a mortgage and then going quiet for a while.

The reason for this is the ‘comparison website’ culture we live in today. Companies like Compare the Market and Go Compare have revolutionised the car and home insurance market. This has been a great solution for consumers, and it has saved people hundreds of pounds a year and given transparency in the insurance buying process.

So, why doesn’t this work in the mortgage world?

When buying car insurance there are a fixed number of variables such as where you live, your car type, how long you’ve had a driving license and claims history. This makes it easy to get you a quote based on what insurance companies can offer at that time.

Mortgages are more complex, there are far more variables considered when applying for a mortgage and every single application is unique. Coupled with the fact that interest rates are always moving (and so is lenders appetite), it makes it impossible to give you a comparison online.

When a mortgage broker assesses a client’s needs, they will input some headline information into a ‘sourcing’ platform, it will give some headline rates to consider. The broker will then dig deeper to ensure that the customer fits the criteria for the best options, often speaking directly to lenders on applicant’s behalf. In essence the broker is the comparison tool, how experienced and knowledgeable the broker is will ensure a quick and smooth application process.

This is the reason that almost 90% of mortgage applications are submitted via the broker network and Martin Lewis (off the tele) repeatedly states ‘find a good mortgage broker’.