In recent years, more and more large mortgage lenders have emerged trying to gain market share in a market that is likely to only grow larger. The biggest player has long been LendUs, which dominates at least when it comes to television advertising and is probably the most well-known loan broker. Otherwise, for example, Free choice Finance has also been around for quite some time and then, as I said recently, some challengers have come.
For those who do not have a good look at loan brokers, I can summarize their function a little quickly. Loan brokers offer a service where they collect many different lenders under the same roof and you then apply for your loan (usually private loan) with them instead of the different lenders. Their service is free, they only get a commission from the lender who finally gets you as a customer.
There you can make a single loan application and reach out to all banks and lenders that cooperate with the loan broker instead of having to apply to several different lenders separately. It is easier to apply for a loan, it only requires a single credit report (which can otherwise affect your credit rating) and you get offers from all lenders who want you as a customer so you can easily compare interest rates and other things.
Smarta goes out hard and markets its service
It has previously been mainly LendUs that has marketed itself with advertising in television and radio and in this way they have become well known in their niche. Probably not as many people know about the competitors. However, the new loan broker Smarta has started advertising on TV and is probably trying to twist some of LendUs’s cake. There are probably also quite a few people who can think of using loan brokers, so it is a good market.
Smarta is part of Free choice Finance, which has been dealing with loan brokerage since 2003 (which is clearly longer than LendUs, which has only been on the Swedish market since 2007). In recent years, Free choice Finance has decided to build on and expand and Smarta is part of this development.
Actually, Smarta is not very different from LendUs or Free choice Finance themselves and their old loan brokerage service, except that it is also possible to compare and find both credit cards and savings accounts in addition to private loans. You can also take out a car loan or mortgage (which you can at Free choice Finance while LendUs only offers private loans). When it comes to loans, you can submit your application and then get a response from all lenders affiliated with Smarta who approve your application. You can then easily compare their interest rates and other terms and choose the loan that you feel is best.
What lenders can you offer from?
Something that is interesting when using a loan broker is which banks and other lenders they work with. To be sure, it is easy and good to be able to compare loans through a loan broker, but if the broker you use only cooperates with a few lenders or only has a little “more expensive” lenders in his stable, it will not be very good.
LendUs has never revealed anything about how many lenders they work with or which lenders this is, which I think is a bit bad unfortunately. Smarta has also not revealed all of its partners, but at least they say they have about 20 lenders behind them and give some examples of which.
I think openness when it comes to things like this is good as consumers like to know what they are getting. Unfortunately, it is probably more rare that the large classical banks such as XEB, Swiftbank and Handswell Bank cooperate with loan intermediaries. These banks often have cheap loans, but what you can do is check how low interest rates you can get from your own bank and if they do not come up with a good offer you can move on to a mortgage broker like Smarta as the next option.