Online mortgage brokers

How do online mortgage brokers and robo advisors work?

Online mortgage brokers enable you to carry out most of the mortgage comparison and application process online, without speaking to a mortgage broker in person or over the phone.

This might mean submitting details about your mortgage search to a chatbot, filling in an online form, or selecting options in an app.

As a result, online mortgage brokers are sometimes referred to as robo advisors (although technically speaking, the term also encompasses other forms of online financial advice). 

Some of these services claim that you can find and apply for a mortgage in just 15 minutes, which is potentially much faster than speaking to a broker or carrying out extensive mortgage searches yourself.

However, there will still be paperwork to go through, and human mortgage brokers will always be used at some point in the process in order to make sure your application is correct and legally binding.

Read our guide on choosing a mortgage broker to find out how traditional mortgage brokers work.  

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Pros and cons of using an online mortgage broker

Searching and applying for a mortgage using a chatbot or app can be a convenient option for those who don't have the time, knowledge or confidence to do it themselves.

Pros of online mortgage brokers

• Flexibility You don't need a face-to-face meeting or phone call before seeing recommended deals, meaning you aren't restricted to office hours. You can find a deal at any time of day, from wherever you are.
• Less paperwork Paperwork is replaced with online forms, which can be filled out at your convenience. What's more, some services will help you with these forms, too, meaning there's less chance of human error. You'll be asked to provide documents to verify your identity and finances, but often these can just be scanned and sent over.
• Speed The use of technology and algorithms means your mortgage options can be found more quickly than in a manual human search.
• Low/no fees In most cases, you won't need to pay for the advice you receive from online mortgage brokers.

Cons of online mortgage brokers

• Less opportunity for human judgment Fully automated services can sometimes overlook your individual circumstances: the cheapest deals aren't always the most suitable options.
• Less help in the early stages A good mortgage broker will give you advice on saving and schemes before you're ready to apply for a mortgage. Some online services offer calculators to give you an idea of how much you'll be able to borrow, but in most cases this can't be classed as actual advice, and isn't tailored to your situation.

Should you use an online mortgage broker?

This really depends on your circumstances and the kind of service you want.

For straightforward cases, particularly if you're looking to remortgage, using a robo-advisor can be a very quick and easy option, especially if you work unsociable hours and would struggle to find time to talk to a traditional broker.

If your circumstances are more complicated, however, you might benefit from having tailored support from an expert adviser earlier on in the process.

To find out about more traditional mortgage brokers, see our guide on choosing a mortgage broker.

Whether you're thinking about using an online broker or a human one, you should always check to see whether they're FCA-registered. You can search for them on the FCA's database.

Online mortgage brokers: who's who in the UK

Below we set out the online mortgage brokers that have access to a wide range of lenders, have hit our benchmark on customer reviews and are fully regulated by the Financial Conduct Authority. 

We've put them in alphabetical order. 

Better.co.uk (previously known as Trussle)

This brokerage says it has 12,000 products on offer and access to 90 lenders across the whole market.

Better.co.uk guarantees a decision on your application within five days, or £100 compensation. 

It is free to use but only works with lenders that pay procurement fees and who have relationships with brokers. This excludes lenders such as First Direct, Cumberland BS, Yorkshire BS and Lloyds Bank.

Habito

A free-to-use whole-of-market mortgage broker with access to 90 lenders with 20,000 products. 

It claims to have a short application process that takes 15 minutes with a turnaround time of 24 to 48 hours to obtain an agreement in principle. 

As a mortgage lender itself, Habito offers a 40-year fixed-rate product. But as a broker, it will not recommend a lender that it is not partnered with, which could limit your options. 

There are no charges upfront, but you can upgrade to the Habito Plus package for a fixed fee that helps you through the buying process including surveying your new property. 

Mojo

With whole-of-market access, covering 90 lenders and 10,000 mortgage products Mojo comes with no upfront cost. 

Any deal with a lender that has a fee can be paid upfront or added to the mortgage, but Mojo adds nothing on top of those fees. 

The mortgages available are good for standard borrowers but may not be suitable for specialist lenders or those with bad credit scores. 

Tembo

Tembo works with more than 100 lenders across 20,000 mortgage products. 

Once you have been through the process, it will offer you a single recommendation. 

It has a ‘boost’ programme that allows borrowers to enlist the help of family members or friends with equity available for their income or deposit, making it easier for first-time buyers.

Tembo charges a fee for its service: a standard mortgage comes with a £499 cost and a boost mortgage will set you back £749.