Majority of providers offer online mortgage applications

The majority of mortgage lenders now allow consumers to apply for a mortgage online, giving borrowers much more choice when looking for an online deal.

Research carried out by Moneyfacts.co.uk found that of the 81 mortgage lenders in the UK, 68 allow mortgage applications to be carried out online. As well as having a wide range of mortgage providers to choose from including some of the biggest mortgage lenders in the UK consumers looking to apply for a mortgage online can select from among some of the most competitive deals in the mortgage charts.

Being able to apply for a mortgage online is not new, but the movement restrictions introduced to help combat the Coronavirus pandemic has helped to accelerate its adoption by both consumers and lenders. In fact, during the peak of social distancing, many lenders began introducing or broadening their use of automated valuations. These allow mortgage lenders to carry out valuations of properties without needing to see the home physically, however these valuations are usually not as accurate as those carried out in person. As such, automated valuations tend to be used by lenders making valuations for remortgages or for those new borrowers who have a high level of equity.

While remortgaging can be done relatively easily online, borrowers looking to purchase their first house or those looking to move home may find it more difficult to complete the full mortgage process online. This is especially the case for those looking for a mortgage at a high loan-to-value (LTV).

Halifax, for example, does allow borrowers to apply for mortgages online and will carry out automated or remote valuations, as well as enabling customers to upload all their income documents online. As well as this, the application can be completed via a video interview or over the phone. Still, first-time buyers and those looking to remortgage at a high LTV may struggle to complete the mortgage online, as Halifax does state that the completion of remote valuations is dependent on the LTV.

An option for first-time buyers or those looking to move home is to speak to a mortgage broker who will be able to provide advice on which lenders allow mortgages to be completed online.

“The mortgage market is reacting to a number of economic and operational changes at the moment, with updates to both products and to relevant criteria or requirements being made with great frequency,” explained Eleanor Williams, finance expert at Moneyfacts.co.uk.

“Brokers may be invaluable to many borrowers, especially those who deal with the whole of the market, as they should be well placed to keep up to date on what is currently available in terms of deals and different providers’ income and employment requirements.

“Applying for the right mortgage for your circumstances can be a daunting decision, but seeking qualified, independent advice may make navigating the maze simpler and easier.”