Between ten and fifteen per cent of home mortgages will be originated on the Web in 2005, compared to around 2 per cent today, says a new report from Meridien Research.
The study, "Online Mortgages: Appraising the Options," details four main choices open to firms who wish to implement an Internet mortgage strategy. These are a pure Internet model, multi-channel approach, acquisition of an existing company and partnership with an exchange.
Christine Barry, analyst at Meridien Research, warns firms against repeating the mistakes of the past such as near-predatory pricing which she says is not a sustainable strategy for a monoline business with high marketing and promotional costs.
"Our advice to financial institutions is to invest in the technology necessary to provide the most competitive rates and the most automated capabilities to provide consumers with a hassle-free experience executed at Internet speed," she says.