Finance by Phone: How to raise a mortgage without leaving home

Buying a home can be time-consuming but there is no reason why getting a mortgage should be. For those with neither the inclination or time to walk up and down the high street in search of the best deals, simply pick up the telephone.

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.

PROMOTED VIDEO
News
Dawkins: 'There’s a very interesting reason why a prince could not turn into a frog – it's statistically too improbable'
newsThat's Richard Dawkins on babies with Down Syndrome
Sport
Malky Mackay salutes the Cardiff fans after the 3-1 defeat at Liverpool on Sunday
footballFormer Cardiff boss accused of sending homophobic, racist and messages
Sport
Rodgers showered praise on Balotelli last week, which led to speculation he could sign the AC Milan front man
transfers
Life and Style
life – it's not, says Rachel McKinnon
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
News
Lizards, such as Iguanas (pictured), have a unique pattern of tissue growth
science
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Arts and Entertainment
Arctic Monkeys headline this year's Reading and Leeds festivals, but there's a whole host of other bands to check out too
music(who aren't Arctic Monkeys)
Extras
indybest
News
Anna Nicole Smith died of an accidental overdose in 2007
people
Life and Style
food + drink
Arts and Entertainment
'The Great British Bake Off' showcases food at its most sumptuous
tvReview: Bread-making skills of the Bake Off hopefuls put to the test
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Test Lead (C#, Java, HTML, SQL) Kingston Finance

£40000 - £55000 per annum: Harrington Starr: A Global Financial Service Organi...

Access/Teradata Developer, Banking, Bristol £400pd

£375 - £400 per day: Orgtel: Access / Teradata Developer - Banking - Bristol -...

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home