Mortgage Intermediaries

Here at Good Finance you can find links to Lendo and Freedom Finance. These are two companies that are working on mediating loans. This means that they themselves do not lend money but they help you as a customer find the best loan.

This brings with it a number of positive things such that they only become a credit check on you when you want to borrow money.

Negative?

bank

If you were to submit applications to several lenders yourself, it would otherwise be subject to a review each time. This can lead to problems as the lenders do not like to lend money to those who have many applications. Instead, for example, Freedom Finance do a credit check, which they then send out to the lenders they work with.

It is of course also positive that you can easily compare prices from many different lenders in this simple way. My guess is that many have gotten clearly cheaper loans by using these services.

The reason I write this is because I read an article on E24 where you were not exactly very positive about these services when you pointed to a number of problems. And some of these I was going to go through here a bit and say what I think about the opinions.

Don’t cooperate with everyone

Don

In the article you can read that they do not cooperate with all the credit institutions and that you do not know who it is that they work with. Of course, it is not good to be a mystery maker, but it would be good if it was clear which ones they were working with.

The fact that they do not work with everyone is quite natural since not all lenders have the same attitude towards this type of service. Sure it would have been nice if they compared everyone but for the moment they still clearly compare many more than what basically all borrowers themselves do which means the service is good.

The credit rating

The credit rating

It is hard to see that there would be any disadvantage to just doing a credit check. Which I think is hinted at. In my opinion, this is a very good way of comparing interest rates and the like with most lenders without compromising the chances of a future loan due to too many credit checks.

That it is currently in the process of legislative proposals that better regulate what applies to credit tests must be seen as something positive as well.