During the first quarter of 2019, 98,566 mortgages were registered in Spain for homes, with an average value of €123,282, according to the latest data from the National Statistics Institute (INE ). Online mortgages are increasingly representing a larger percentage of these, overcoming initial reservations about this type of loan.
Just as you file your tax return online, shop at the supermarket with a click, or book your holidays through online travel agencies, why not apply for mortgages online? We'll tell you what this type of loan involves and why it's becoming one of the main trends in the financial sector.
What are online mortgages?
When we talk about online mortgages, one of the main differences with a traditional contracting system is based on the environment in which you carry out the procedures prior to signing before a notary: while in classic mortgages, you have to go to the financial institution physically, with online mortgages you can formalize all the procedures through the computer, mobile or tablet.
The rest of the characteristics are the same, that is, it is a contract by which a credit institution grants a loan to a third party for the acquisition of an asset, which remains as collateral for said payment under certain conditions and for a specific period, being governed in both cases - both in online mortgages and in traditional ones - by the same regulations and being subject to the same consumer protection requirements .
Why should you consider this type of loan?
However, they are encouraging its adoption by citizens. What are the benefits of this type of mortgage loan compared to traditional models?
Better financial terms
With a smaller cost structure, online mortgages typically offer more favorable financial terms for borrowers. “In the home loan market, online banks compete directly with traditional institutions by offering the most advantageous conditions for the user,” notes the financial website Bolsamanía .
Generally speaking, mortgage products sold online have much more competitive interest rates and, in addition, they usually do not charge fees - or these are lower - so you can save a good amount of money in the short and long term.
Personalized attention
According to a report prepared at the end of 2018 by HelpMyCash, a third of citizens who are reluctant to take out mortgages online would do so if they had a personal manager .
That's why some online banks have incorporated personalized customer service and even opened physical branches to serve their clients. This is the case with UCI, where you have your own dedicated manager, a professional who will guide you through the entire process and assist you by phone or in person—at their offices in Valencia, Seville, Madrid, and Barcelona—whenever you prefer.
Transparency
Another aspect that raises suspicions among the public is the transparency of online lending companies. However, as HelpMyCash points out, in the case of online banking, you can consult all the financing terms and conditions on the website itself , giving you access at all times to comprehensive information about the products.
Security
Do you think the digital environment is less secure or subject to less control? Not at all. When you take out a mortgage online, your data is encrypted to protect your information and ensure that only the bank can access it.
Similarly, online lending institutions perform the same risk analysis as traditional banks, studying your profile in detail to confirm that you meet the necessary conditions to approve the loan.
Comfort
Finally, you also can't forget the great conveniences of taking out a mortgage online: no travel, no office hours, no waiting...
With all the information available online, it will be easier and faster to evaluate the different loan offers on the market and choose the one you consider most suitable . Best of all, you can do it from the comfort of your own home, without having to travel across town from office to office. This also improves accessibility for people with reduced mobility or residents of small towns. Furthermore, online banking is much more efficient, so you'll receive a response regarding the approval or denial of your loan within hours .