16% of homeowners applied for their current mortgage online and this is set to double, with 33% saying they are likely to apply for their next mortgage online, according to latest research from HSBC.
UK consumers are showing an increasing preference to deal with their finances online as they believe it to be quicker (63%), more convenient (54%) and cheaper (43%). For their next purchase, more than half of consumers also expect to apply for insurance policies (69%) and savings accounts (56%) online.
The poll of over 1,700 householders, also shows a significant majority (74%) of existing mortgage holders applied for their current mortgage face-to-face with an adviser. 47% of homeowners who expect to re-mortgage, plan to speak to an adviser face-to-face for their next application.
Peter Dockar, head of mortgages at HSBC, said: “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.
“However, a mortgage is often the biggest financial decision anyone is likely to take in their lifetime so qualified advice remains of significant importance to the householders we polled.”
79% of householders who applied online for their last mortgage would do so again, suggesting they had a positive experience, HSBC said. 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. Interestingly, Londoners came out on top as most likely to use an online DIY mortgage process (38%).
