With robots taking over from humans in so many industries, do you really need to consult a human mortgage broker when buying a new home?
With sites like Jet2holidays driving traditional travel agents into the ground and A.I driven platforms like Rightmove dominating the property market, could a robot take you through the entire process of getting a mortgage for your new home?
This article will compare the benefits of both A.I software and human brokers at each stage of the mortgage process, to answer the question of whether humans are becoming redundant in yet another industry.
Initial Search
This is where computer software can be most beneficial. You can enter some basic details online and be presented with the cheapest mortgage option in a matter of seconds.
However, just because you are eligible in theory for a certain mortgage, does not necessarily mean that you will be accepted by the lender. There are many more factors that go into securing a mortgage than simply deposit size, income, and credit history.
Spending patterns, dependents, job security, and job history will all play a role in the final decision, and the experience of human market brokers in dealing with people in many different situations may be invaluable.
Your broker may well use A.I searches to narrow the pool of potential lenders, but they will take the extra step of filtering out options that they know are unrealistic.
This means that although you may save time initially by using a digital search, utilising the experience of a professional human broker will prevent you from spending hours on unsuitable mortgage applications.
Number of Options
There are some human brokers who are connected to a single lender or group of lenders and are contractually obliged, or financially incentivised, to only offer you their products.
Most robot mortgage search tools are completely independent and you do not need to be concerned by the motivation behind their recommendations.
That said, whilst robo-brokers will do an excellent job of searching through all the mortgage providers on the internet and finding you the cheapest option, what they are unable to do is offer you mortgage deals which are not available directly to the customer.
Human mortgage brokers have contacts within the mortgage lender industry established and developed over years. Some mortgage providers will only offer their lowest interest plans to customers who apply through a respected broker.
Choosing the services of a registered independent mortgage advisor glasgow such as CSR Financial Services is the perfect way to ensure balance between exclusive access and unbiased advice. Not only do we have years of experience and connections within the industry, but we are and not constrained by connections with a single lender, meaning our sole focus is finding you the best deal.
Application
When applying for a mortgage it is essential that you gather all the essential documents before meeting with a bank or other lender.
When you apply for a mortgage using a broker, they will assess your situation and assess what documents will likely be required to secure approval. These documents can include details of assets, payslips, tax returns, credit reports, job history, and more.
The type of documents the bank will want to see can vary dramatically from person to person. Whilst an A.I platform may be able to recommend what documents you should gather based on your employment information, a human will use all their experience of dealing with people in similar situations to you and make sure you are well prepared when applying for a loan.
Coming to a meeting with a lender fully equipped with all the documents they could possibly ask for will make your application look more professional and may influence their assessment of how reliable you will be when making repayments.
This may not seem a big deal but when trying to secure a mortgage with the best possible interest rate these small details can make a big difference.
Switching to Save
Inactivity in the mortgage market is harming many consumers according to a report by the Financial Conduct Authority (FCA) which states that about 800,000 consumers don’t switch mortgage providers or policies when they should. By failing to remortgage or product transfer during the introductory rate period consumers are losing an average of £1000.
You could also stand to lose out on even more savings if you remain on your initial provider’s Standard Variable Rate (SVR) after your Fixed-Rate term expires.
Whilst robo-advisors may be able to find you a deal initially, it is the continual support of a Human advisor that will be invaluable throughout your mortgage and ensure you switch deals when financially prudent.
By establishing a long-term relationship and advising throughout the product term, professional mortgage brokers provide a customer focus which is impossible for A.I technology to provide.