A recent case study was undertaken by The Financial Services Authority (FSA) indicates that the cost of applying for a loan at an online mortgage broker is much lower than traditional methods. The average cost of a traditional loan application was almost nine percent higher than that for an online application.
Lenders are becoming increasingly flexible in their requirements, and as a result, many online mortgage brokers are becoming more competitive with respect to charges. In fact, it’s believed that many online brokers are now charging less for a loan application than a private mortgage lender would. However, the market is becoming more competitive, and more lenders are being forced to lower their charges.
Lenders may be forced to charge a lower fee for an online loan application
Simply because the loan is easier to complete. At the same time, lenders who offer an online application may be left with a higher percentage of applications that are rejected.
On the other hand, there are new market entrants that have been lobbying for lower fees to entice customers to use their services. These include lenders that offer services to service customers directly via the Internet or even offer the ability to directly communicate with their customers via telephone.
There are numerous advantages if you use a BridgePayday online application page. There is no need to spend time going from one store to another, and you are able to access your application online from the comfort of your own home.
Advantages of using an online application
Firstly, it’s possible to apply online for loans as soon as you receive your credit card statement. Lenders may also make provision for late payment charges if you do not pay the loan in full, so if you miss your deadline for a loan payment, then you may not be required to pay the total. It’s also possible to set up automatic repayments for your loan, which means that payments will be deducted from your bank account at a certain time each month.
You can use these options to take control of how much you pay, rather than be forced to make monthly repayments that you may find difficult to manage. In addition, a fixed-rate loan will allow you to know exactly how much you will repay each month, which will help you budget accordingly.
Another popular reason for using an online application is that you can receive quotes from a variety of lenders within a short period of time. When applying for a loan, it’s vital that you compare rates to get the best deal.
Not only can you obtain quotes from various lenders using the same tool, but you can also get quotes without having to speak to a representative. This way, you can review all the information and then decide which lender will provide the best option for you.
You can also contact the lender directly
Use the chat and email features to get answers to any questions you may have about the application process. Many lenders offer tools that will help you sort out the details of your loan so that you can compare the various options available to you.
Borrowers are often reassured by the fact that they can use their own computers in order to apply for a loan. The convenience of applying online allows borrowers to do it themselves, without having to pay any fees.