Mortgage price comparison websites in the UK have come under fire from mortgage experts.
Obligo.co.uk has reportedly slammed the increasing number of such sites for not providing adequate information when promoting mortgage deals, and has also claimed that customer’s personal details also are being sold on.
Although price comparison websites can be considered useful when searching for such things as electrical goods, they can cost an unwary homebuyer a lot of money as they emphasise the rate of the mortgage deal without always considering reversionary interest rates or a borrower’s personal circumstances.
Chris Gardner, spokesperson for Obligo.co.uk, said that price comparison sites rarely factor in variables such as potential changes in a customer’s circumstances that would affect their ability to repay the loan in the future, or if the customer would meet a lender’s criteria in the first place.
He went on to say that some of the practices of price comparison sites may be a cause for concern for customers who believe that they are completely impartial. Obligo claims that some websites who will compare mortgages for a customer will sell the details of their enquiry on to other brokers or financial services. Many people believe that such practices are widespread in the industry.
It goes without saying that good advice comes at a premium, and in order to find the best deal for you, it’s wise to consult a CeMAP trained mortgage broker or intermediary. Mortgage advisors are overseen by the Financial Services Authority and a highly trained advisor will be able to offer a personal service and identify potential problems for you that a comparison site would most likely miss.