Mortgage rates and deals can vary widely. Taking time to look at what is on offer in this sector can help homebuyers find a product that best suits their needs and their budgets. How do online mortgage comparison sites work and what do they offer?
What are Online Mortgage Comparison Tables?
These tools are designed to make it easier for the individual to find and compare different types of mortgages and any related deals and offers in one place. Some sites may solely focus on one type of loan; larger sites may offer various tables dedicated to different types of products.
Searching through the entire mortgage market can be time-consuming. Using a table that has already done all the background research in advance and that presents a range of deals and offers on one page is a quick and effective solution for many.
What do Mortgage Rates Comparisons Offer?
These sites can help those searching for mortgage deals in various ways. For example, they can:
- Save them time and effort researching what is on offer in the market.
- Save them money by showcasing current deals and offers.
- Help them assess costs to give a broader picture of their potential loan commitments.
Most major mortgage rates sites will compare different types of mortgage individually. They may, for example, have pages for:
- First time buyers
- Fixed rates
- Discounted deals
- Low deposit products
- Offset loans
- Buy to let products
- Right to buy/shared ownership
- Variable rates
The information given may vary from site to site. Some will give basic rate and offer data with links to the mortgage providers for those that want more information. Some will give more detailed information on the page for an easier snapshot comparison, including:
- APR information (i.e. introductory rates, offer periods and the underlying APR).
- Loan to value rates (i.e. how much the lender will lend and how much the deposit needs to be).
- Fees and costs (i.e. arrangement fees, booking costs, early repayment fees and overall cost comparisons)
- Special offers (i.e. cashback deals and free fee offers).
This can be a good way of seeing what is on offer, which deals may be relevant and which costs/savings may be applied.
Things to Consider Before Using Mortgage Interest Rate Comparison Sites
It is important to use sites that offer as broad a spread of mortgages from many different lenders as possible. It may be wise to avoid tools that only focus on a few mortgage lenders as this won’t give a full picture of what is on offer.
It is also worth remembering that the information on a comparison table is all based on averages and advertised offers. The deals shown may not automatically be available to every applicant depending on the acceptance criteria of the individual mortgage lenders.
Saying that, these comparison sites can be a useful part of the mortgage decision making process. Used in tandem with mortgage calculators that can then use this data to give an estimate of the overall costs for the individual, they can make it a lot easier to find a cost-saving loan deal.