Mortgage borrowers Baffled By Mortgage Deals When Using Price Comparison Sites To Compare Mortgages.

May 11, 2010 - PRLog -- According to UK mortgage experts, http://www.obligo.co.uk , price comparison websites are potentially misleading consumers with simplistic comparison tools focusing solely on the mortgage deal rate rather than the true cost of the mortgage over time without taking into account fees or reversionary interest rates, and little regard to the personal circumstances of the borrower.

In the UK price comparison websites have seen a huge growth in popularity comparing many different types of consumer products from car insurance and electrical goods to utility providers and  mortgage deals and remortgage deals.

The competition between rival comparison websites has reached fever pitch in recent months, with most now offering a whole range of different product comparisons.

According to Chris Gardner, spokesperson at mortgage and property website, Obligo.co.uk the problem stems from the price comparison websites focusing solely on price, he said “price comparison websites are useful if one is searching for relatively simple products such as car insurance or utilities where the comparison results can be judged on hard facts. The problem with comparing mortgages in this way is that the price comparison websites can never factor in the soft facts, for example if the borrower will actually meet the lenders criteria or whether or if there are any circumstances that should be taken into account that may affect the borrowers ability to pay in the future”

He went on to say “what borrowers need is the help of a mortgage expert if they really want to search the market. Advice is great value these days and a good broker or mortgage intermediary can not only give you the lowdown on the mortgage deals and remortgage deals, but they can tell you if you qualify. It’s also worth noting that mortgage experts are now highly trained and regulated by the Financial Services Authority. By using a good advisor they will asses your application and may identify problem areas or needs that a price comparison website who just compare mortgages could never hope to find”

With intense competition between the different comparison websites many have recently expanded their offerings to include mortgage tools, and advertising for mortgage deals and remortgage deals to increase revenues.

According to Obligo some of the tactics employed by price comparison websites to make money may actually concern consumers who believe that the key attraction of a price comparison website is its impartiality. Obligo alleges that some of the websites that compare mortgages will actually sell the enquiry to brokers or financial institutions who bid for consumers enquiries.

A mortgage broker who did not wish to be named said “its standard practice in financial services to buy leads. For us brokers it’s a way of getting business. Some leads are better then others, but there are times when the person you call gets cross as they were not told that there details were being sold to the highest bidder”

Commenting on the situation, Chris Gardner, spokesperson at obligo added. “What the broker says is true and is normal practice. That may shock some people, but there are simple things you can do to avoid it”

Here are some top tips when using a price comparison websites or any other mortgage website.

1.   Make sure the website or company are regulated by the Financial Services Authority. If they are not, they will almost certainly be selling your details as leads to a third party.

2.   If there is not a phone number that you can call for advice it probably means that there is nobody qualified to give you advice? Again you details will probably be sold to highest bidder.

3.   Read the websites privacy policy – it should tell what will happen to your details.

4.   Trust your instinct. Walk away if you have any doubts.


Obligo limited Publishing Guidelines

Permission is granted to publish all or part this article electronically in free-only publications, like websites or e-zines, commercial or non-commercial (print requires a permission) as long as the resource box is included without any modification. All links must be active. A courtesy copy is requested on publication to chris.gardner@obligo.co.uk.


Article Title: Mortgage borrowers confused by mortgage deals when using price comparison sites to compare mortgages.


Authors URL:  http://www.obligo.co.uk

Author Name: Chris Gardner

Contact email: chris.gardner@obligo.co.uk

Author Blog: http://www.obligo.co.uk/blog


Resource Box must be included

About the author:

Chris Gardner (chris.gardner@obligo.co.uk.) is a director of Obligo, the UK mortgage and property portal. Obligo provide consumers with free tools and information helping them to make well informed mortgage and property decisions.

Read more about Obligo, other mortgage and property related articles at http://www.obligo.co.uk/grapevine.html  

For free mortgage tools and information go to http://www.obligo.co.uk


About obligo
Obligo is a new mortgage business based around a revolutionary concept that will provide consumers with tools and information about UK mortgages, whilst retaining a human aspect to case underwriting and application management.

Obligo intends to change the way UK consumers approach mortgages. Obligo is a unique collaboration of information and resources from both the UK mortgage and property markets.

Features that have recently only been available through websites and entities are collectively presented to the consumer in a simple, easy and effective manner.

Real-time house price information, automated property valuations (AVM), consumer guides, market analysis and expert market commentary is available together with industry leading mortgage calculators and application tracking systems.

Obligo Ltd is a privately held company with a highly experienced and proven management team with proven track records in start-up acquisitions and sales in the mortgage and other sectors.

The founders have set a course in the changing world of financial services to deliver transparency and efficiency to the UK mortgage market .
for more information email chris.gardner@obligo.co.uk

# # #

Obligo is a free to use consumer website for UK mortgages. Obligo provides free property valuation, mortgage tools and access to mortgage experts. obligo engages with consumers and empowers them to make well informed mortgage and property choices.