24 July 2016
Find out more

A third of consumers prepared to apply for mortgage online - HSBC

06 May 2014  |  1816 views  |  1 Source: HSBC

Nearly one in six homeowners applied for their current mortgage online (16%) 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. With the advent of MMR it is clear that consumers still value advice with 47% of homeowners who expect to re-mortgage, planning 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."

Almost four out of five householders who applied online for their last mortgage would do so again (79%), 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. Interestingly, Londoners came out on top as most likely to use an online DIY mortgage process (38%).

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 07 May, 2014, 17:57

After being around for nearly two decades, ecommerce for physical goods accounts for only 6% of retail sales. If online sales of mortgages has already hit 16%, that's really BIG news. Any idea if the mortgage application is omnichannel or 100% online? From Multichannel To Omnichannel And Beyond

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comFind out moreVisit VocaLink.com

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8199 views 14 comments | 32 tweets | 37 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
7891 views 0 | 14 tweets | 8 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
7826 views 3 | 19 tweets | 7 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7615 views comments | 22 tweets | 28 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
7604 views comments | 6 tweets | 3 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job