“How do you choose between lenders?” is a question we get asked often. It can be a tricky question to answer – no two brokers will have the same method, for one. But it involves broker and client looking at an offer and seeing if it really fits a business.
However, there’s been a development in that regard – price comparison has finally reached financial services. In the same vein as Compare the Market and MoneySupermarket for insurance, a comparison app has been launched to compare the publicly available offers from lenders and suggest options for the clients.
It’s an interesting option, with both clear benefits and obvious setbacks. On the one hand, the more information someone seeking a loan can access for themselves, the better. Having that information to hand can help a client understand the process better and make a more informed decision. On the other, just because the deal is on a price comparison site doesn’t mean it’s the right one. Finance broking is often an industry that relies on personal relationships. Lenders are much more likely to give better rates to applications coming from brokers they know and trust. Coming in from a public application is unlikely to give you the best rates available – and you would still have to be accepted for the loan.
As such, whilst it’s important to be aware of what’s available, price comparisons aren’t going to be the death knell of brokers any time soon. Knowing your options is good, but you can’t beat the personal service you get from a broker!