Finance by Phone: How to raise a mortgage without leaving home
Sunday 01 December 1996
More than 15 lenders now run telephone mortgage services. Each organisation prides itself on the convenience, speed and simplicity of its operation. Many also offer cheaper deals by telephone than through their network of branches.
To find out if the lender would be prepared to give you a mortgage simply call and answer some questions about yourself, such as where you live, your age and your income. In many cases the lender will be able to make you a provisional offer within minutes. If you know how much you want to borrow the lender will be able to work out the payments at the same time.
Some lenders will fill in a mortgage application form on their computer as you speak. This typically takes around 25 minutes but the phone call is often free. A copy of the application will be sent to you to check, sign and return. Other lenders will send an application form for you to complete. Bank of Scotland Mortgages Direct says it does this so people can sit down and take their time, ensuring the information is exact.
Telephone mortgages can be cheaper. For example, Bradford & Bingley Building Society charges a standard variable rate (SVR) on its mortgages of 6.74 per cent. But its telephone mortgage arm, Bradford & Bingley Mortgages Direct, has an SVR of 5.99 per cent.
Going direct also gives borrowers access to lenders who may not have a branch near them, or indeed, may not have a branch network. For example, Direct Line only offers its services over the phone and has an SVR on its mortgages of 6.05 per cent.
While some lenders believe mortgages sold over the phone should be kept simple, others offer a range of products.
Direct Line has taken the no-frills approach, offering just one mortgage product with no fees attached. The mortgage is available to both first- time buyers and existing borrowers, for up to 90 per cent of a property's value. The mortgage is available on a repayment or interest-only basis. Like several other direct lenders, Direct Line does not charge a mortgage indemnity guarantee (MIG) fee, which can add hundreds of pounds to the cost. The MIG fee is to pay for insurance for the lender against the risk of a borrower defaulting on their mortgage payments.
Britannia offers some of the range of mortgages that are available through its branch network through its telephone arm as well, although to keep the process simple it limits these to repayment or interest- only mortgages. The building society believes it can reach many people who do not live near one of its branches in this way.
Other lenders offer a range of mortgages that are only available over the phone.
This year Legal & General launched its direct mortgage operation. Like Bank of Scotland Mortgages Direct it is offering flexible mortgages that allow people to have payment holidays and to vary monthly payments.
So, if you feel confident about dealing with a lender over the phone, ring around to see what deals are on offer.
q Legal & General, 0800 664444; Bank of Scotland, 0800 810810; Britannia, 0800 526350; Direct Line, 0181-649 9099; Bradford and Bingley, 0800 258258.
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 2 Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Tommy Ramone dies: Last surviving founder and drummer seminal punk band The Ramones dies aged 62
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...