Price comparison website, comparethemarket.com, has linked up with mortgage technology provider, Koodoo to offer remortgages online.
The execution-only service will enable homeowners to view personalised deals and then apply using a process which is described as ‘simpler’ as it involves fewer clicks.
As well as comparing products from their existing lender with other deals on the market, the borrowers can choose whether they would like to apply direct or through a broker.
At the moment only product transfers and mortgages between providers will be available. NatWest and Santander are among the providers already on board but comparethemarket.com said more were set to join.
Mark Gordon, director of money, comparethemarket.com said: “We aim to make the process of getting a new deal an even simpler and easier experience for customers through our new relationship with Koodoo.
“The remortgage process can be time consuming and our new service will ensure that homeowners can get the best value for money by looking online.
“This service is designed for homeowners looking to remortgage onto similar deals. comparethemarket.com will continue to offer intermediated mortgage deals for those people who wish to seek advice.”
The move comes after the FCA’s Mortgage Market Study identified a need for greater accessibility and ease when purchasing mortgages and called for digital tools and technology to help in this process.
But it would also appear there was a demand from homeowners for this kind of innovation. Indeed, Koodoo’s research found 83% of online users would prefer to apply direct with a lender than with a broker when given both options.
It is thought Covid-19 and the impact some people have felt financially could see an increasing number of homeowners switching to a new product with their existing lender rather than switching to a new lender who would require a full credit and affordability check as well as a property valuation.
Benefits to lenders
40% of mortgage searches, via price comparison websites, in the UK are powered by Koodoo technology and the platform enables lenders to acquire and retain customers at a lower cost.
Mortgage lenders on price comparison website panels will benefit from Koodoo’s partnership with comparethemarket.com by being able to show a larger pool of savvy homeowners the most cost-effective rates from their existing provider.
comparethemarket.com will continue to show intermediated mortgage deals for those customers who wish to use advice.
Seb McDermott, Koodoo chief executive and co-founder, said: “The Koodoo platform aims to make the mortgage process seamless and transparent for customers, lenders and brokers alike.
“We are delighted to add comparethemarket.com to the platform, its scale and deep understanding of customer needs will help enhance the service we provide to our lender and broker partners.”