5th May 2014
The number of people set to start applying for online mortgages is going to double according to new research from HSBC.
Nearly one in six or 16% of homeowners applied for their current mortgage online but the lender asserts that 33% believe they are likely to apply for their next via the internet.
UK consumers are showing an increasing preference to deal with their finances online as they believe it to be quicker, more convenient and cheaper. For their next purchase, more than half of consumers also expect to apply for insurance policie and savings accounts online.
The poll of over 1,700 householders shows a significant majority, at 74%, of existing mortgage holders applied for their current mortgage face-to-face with an adviser. With the advent of the Mortgage Market Review, which brought in tougher credit checks, it is clear that consumers still value advice with 47% of homeowners who are expecting to re-mortgage, planning to speak to an adviser face-to-face for their next application.
Peter Dockar, head of mortgages at HSBC, says: “With current and prospective homeowners becoming more comfortable with the convenience and control of managing their finances online and with the time taken to complete the mortgage application process reduced to just 30 minutes, it is perhaps less of a surprise that online mortgage applications are set to double.”
Almost four out of five householders who applied online for their last mortgage would do so again, suggesting they had a positive experience. Of those who applied in-branch for their last mortgage, 44% would make their next mortgage application online, compared to 46% of those who applied for their last mortgage via the telephone.
Younger homeowners are the most likely to apply for a mortgage online, with 53% of 25-34s planning to do so compared to 19% of over-55s. Londoners came out on top as most likely to use an online DIY mortgage process.