The development of new technologies has expanded at a dizzying and exponential speed at all levels and sectors of our society. We live in a true technological revolution that is developing incessantly and in an already unstoppable way. We continually witness new applications and technological advances that improve people’s lives, communication and favor economic development.
We speak especially of the development and expansion of Information and Communication Technologies: the so-called and well-known ICTs. People, companies and institutions are implementing and using them more and more in their day to day, to improve the fluidity and efficiency of their communications with other people, clients or users.
ICTs facilitate access to information and its transmission among users immediately, but it also enhances speed, efficiency and operability when carrying out procedures for citizens with institutions and also with companies.
In the field that occupies us, the world of mortgages, we can see it with the great increase in recent decades in the procedures that customers can carry out with their banks, comfortably from their homes, or in the places where they are located. find them by using the internet, using different devices and applications.
Online Bank Mortgage and Fintech Mortgage
Online mortgages have proliferated exponentially in recent years. With them, users can carry out practically all the procedures without going to the bank office. Banks had previously been concerned for a long time with having virtual parallel banks on the network.
We are not referring to the internet portals that financial entities offer to their clients so that they can consult their balance, their notes or movements online and make transfers. It is about the existence of authentic virtual banks through which they offer their own services, products, deposits, investments and mortgages and where users do all their procedures online, although they can also have telephone assistance.
Large banks have their own online bank, such as CaixaBankNow, which is CaixaBank’s digital banking, BBVA online , or Openbank , which is the Santander Group’s online bank. There are also banks that are practically purely online, and that have very few physical offices, as is the case with ING.
We are also in full expansion of Fintech, which are innovative financial services and products supported by the technology offered by companies and financial institutions.
Fintech is a term that contracts and unites the English words “finance” and “technology” and with it we can define these innovative technological and financial products and also the companies that create and provide them. With all these factors and advances, it was expected that, in recent years, the number of online mortgage contracts grew dramatically.
The Fintech mortgage must be understood as a mortgage obtained remotely through mortgage professionals who support and use innovation and technology. From the Fintech innovative ideas are offered to obtain financing, loans or mortgages. They also avoid bureaucracy, travel and offer personalized and instant managers through any device: computer, tablet or mobile.
The online mortgage represents advantages for the client and for the bank
It is clear that banks are delighted that mortgage advisers find them clients and, in addition, online mortgages offer them a whole series of advantages: they can reach resident clients anywhere and save money on the endless expenses involved in maintaining many offices physical.
If the mortgage is obtained online, the bank avoids personnel who have to present the mortgage to the client, and the large number of hours that the bank employee must use to carry out all the procedures with the client.
Advantages and disadvantages of online mortgages for the client
Not only does the bank find benefits, the advantages also affect the client and not only because of the comfort and agility in carrying out the process that involves the constitution and formalization of the mortgage. In addition, the expenses, the commissions, the spreads that apply to variable mortgages, and the interest rates, are generally lower and therefore more attractive for the client in the case of online mortgages.
The requirements of linked products to obtain the mortgage with improved conditions are also generally lower.
In short, online mortgages are advantages over advantages. The best conditions for online mortgages are added to the comforts involved in being able to carry out the procedures that the mortgage entails, from the place where we are, with the device that we have.
You also have to be aware that everything has its price and that the advantages come with some disadvantages, and these may be small or non-existent for some buyers and therefore benefit only from the advantages, but for others, these disadvantages can become real obstacles difficult to overcome and for some they can be insurmountable, seeing in this case having to resort to traditional banking to get the mortgage.
But what are these drawbacks of online mortgages? In the first place, all the advantageous conditions of online mortgages that we mentioned above many times imply that online banking is more demanding with respect to the conditions to be met in order to achieve the approval of the mortgage, such as a more important payroll, count with higher income, a better credit history, having greater savings … in short, they tend to require a more solvent and healthier economy for the granting of the mortgage than in the traditional mortgage.
Online mortgages by offering more advantageous conditions leave very little possible margin for negotiation and therefore it is difficult to improve their conditions, unless there are mortgage professionals or mortgage brokers who, when working with wholesale mortgages, obtain conditions really attractive and personalized.
Also, many sectors of the population do not have the necessary skills to follow the entire mortgage contracting process online and others who, even having these skills, are reluctant to new technologies and prefer direct and personalized contact. Nor are there few people who are wary of hiring or acquiring goods and services online and the mortgage, due to the amount of money that it involves, more rejection of these people can produce it processing and hiring it through the internet.
But among consumers who easily access the Internet, online mortgages are gaining notoriety and popularity day by day for all the great advantages they entail: convenience, ease of contracting, agility, better mortgage conditions, much lower interest rates than in traditional banking and also with fewer linked products that ultimately make the mortgage significantly more expensive.
Importance of professional advice also with online mortgages
Despite the fact that online mortgages represent an important advance supported by new technologies, giving buyers important advantages over customers who prefer traditional banking, it is also very important in this case to have qualified professional advice from the mortgage sector.
In the past and today, countless serious mistakes have been made when contracting a mortgage by consumers. There are not a few who have signed a mortgage and months or years later have gone to the office to find out if they contracted a fixed or variable mortgage, what mortgage index is their referenced mortgage or how much the differential increases.
On many occasions, abusive clauses have been applied to consumers that have caused them serious financial damage. A great variety of them have already gone through our entire legal system: Courts of First Instance, Provincial Courts and Supreme Court. In some cases they have even reached the Court of Justice of the European Union (CJEU), such as the floor clauses, or the indexation of the variable mortgage to an index more expensive than the Euribor.
All these errors and abuses would have been avoided thanks to professional advice and, in addition, in countless cases, much more advantageous interest rates would have been obtained that would have translated into much more affordable monthly payments.
In Mortgages Plus we are professional advisors in the mortgage, financial and legal sectors and we can obtain mortgages with really advantageous and personalized conditions, avoiding at the same time that the consumer makes mistakes that harm them financially.