The difference between an online mortgage broker and a face-to-face service

Traditional mortgage brokers have an important part of the mortgage application process for a long time. By using their knowledge, they help customers to find the best mortgage offer based on their individual circumstances.

For many years, you could only use a broker service in person or over the phone, but new companies entered the market offering an online mortgage broker service. In this article, we explore the differences between the two.  

What does a traditional mortgage broker do?

Finding a mortgage can be difficult when there are so many options and lenders on the market. A mortgage broker helps to make things easier during what can be a stressful time by finding the best mortgage deal. Appointments with traditional mortgage brokers are face-to-face or over the phone.

What do online mortgage brokers do differently?

Online mortgage brokers let you manage most of the mortgage search and application process digitally, without needing to meet or speak with a broker directly until further on in the process.

You might be asked to complete an online form, use a chatbot, or interact with a mobile app to provide details about your mortgage requirements and start the search process. While the early steps are automated, human brokers still play a role in reviewing your application.

Many people like using online mortgage brokers as they can start the process when it suits them, rather than having to wait for an in-person appointment.

Online mortgage brokers you can use

Here’s a roundup of some of the online mortgage brokers you can use.

Better (formerly called Trussle)

Rated 4.89 out of 5 by our Smart Money People reviewers

Established in 2015 as Trussle, the company rebranded to Better in 2022 following its acquisition by the US firm Better.com. Better provides access to mortgage products from over 100 lenders, and more than 12,000 deals.

Better helps first-time buyers, those looking to remortgage, and buy-to-let investors. People can complete the mortgage application process online, with support from dedicated mortgage advisers. While the service is fee-free for most clients, a fee may apply for people with adverse credit histories, refundable if no suitable lender is found. Better also offers tools including mortgage calculators and rate monitoring.

Habito

Rated 4.90 out of 5 by our Smart Money People reviewers

Habito was founded in 2016 and enables people to search for and apply for mortgages online. Habito provides access to products from over 90 lenders, covering thousands of mortgage deals.

People start by completing a digital fact-find, which is assessed by a combination of technology and qualified mortgage advisers. The service offers advice via live chat rather than traditional face-to-face or telephone meetings.

Habito is free for most standard residential mortgage cases, although fees may apply in more complex situations such as buy-to-let or specialist lending.

Tembo

Rated 4.98 out of 5 by our Smart Money People reviewers

Tembo checks over 20,000 mortgage products, from 100+ lenders and 25 schemes to find the best deal. You get a dedicated adviser with the same expert supporting you throughout the process.

You can get same day appointments, seven days a week speaking to an advisor online or over the phone. Tembo uses smart technology, increasing affordability by £88,000 versus standard mortgage calculators.

Is a digital mortgage broker better than a traditional broker?

The greatest benefit of a digital mortgage broker seems to be convenience...searching the market at your own leisure, just as online shopping has transformed the retail experience.

Digital brokers also claim that computers search the market better than any human, though with many of them still employing some degree of human decision making, it seems customers might get the best of both worlds.

Many of the digital mortgage brokers can also handle complex searches, such as inconsistent incomes or mortgages for self-build properties.

Of course, if you would rather sit down face to face with someone to start the ball rolling on your mortgage search, then you might prefer to work with a traditional, face-to-face broker.