Despite the fact that the economy has slowed, that the Bank of England has cut and will cut borrowing costs, that house prices are continuing to go down, and that the service sector has taken a major hit, mortgage lenders still providing a relatively wide variety of products and options.
Most of these lenders offer some way to apply for mortgage online. These online mortgage lenders can be divided into two groups: ?brick and mortar? and ?online only.? The lenders that offer the option to apply for mortgage online can also be grouped according to the provenance of their products. Some online mortgage offers come only from one source, whilst other organisations offer products from a wide range of companies.
If you apply for mortgage online, there is usually a mortgage payment calculator to get you started. In general, you furnish some basic information, and an estimated monthly repayment will be calculated. Sean Horton, in his article Take Advantage of an Online Mortgage Calculator, on Ezine.com, says that when you are going to apply for mortgage online, you need to be prepared to divulge ?your current employment status and credit status? towards the beginning of your enquiries. This online mortgage calculation, of course, is only a rough idea. You will have to supply much more information and agree to many terms in order to have a final number.
An increasingly popular trend in the companies offering the option to apply for mortgage online is the commission rebate. In April, Financial Times reported that ?a handful of online mortgage brokers offer rebates of about 50 per cent of the commission they earn for arranging loans for borrowers ? while also charging no other broker fees.? This rebate can be helpful; however, advice does not generally accompany these offers. They tend to be ?execution-only services? (so) borrowers need to know the mortgage product they want or be comfortable choosing for themselves.?
In addition to the help of mortgage calculators and the bonus of getting a commission rebate, when you apply for mortgage online, you are saving yourself a significant amount of time and money. By searching and applying for a mortgage online, you save yourself the time and energy it would take to travel around to different banks and lending institutions. In addition, you save money by allowing lenders to fight over your business. With the housing market slowing down, lenders are becoming more and more interested in attracting your business. By applying for mortgage online, you'll have a number of mortgage companies all competing for your business, and this, in turn, will prompt them to offer you the lowest rate they can or special incentive packages.
As always, be sure to research any company through whom you apply for mortgage online before divulging your personal information. The Office of Fair Trade and references from those you know personally are most helpful in avoiding the numerous scams.