Online mortgage applications "set to double"

The Momentum UK Team 12 May 2014

More and more people are applying for a mortgage online, with the number set to double according to new figures from HSBC.

According to the figures, nearly 1 in 6 homeowners (16%) applied for their current mortgage online. This could double in coming years as a third (33%) said they are likely to do so for their next mortgage.

It appears that Brits are moving towards technology more and more when it comes to our finances, with 63% believing it’s quicker to manage their money online. Over half (54%) of those questioned in the HSBC survey say it’s more convenient, with 43% believing it to be cheaper. Given these figures, it’s hardly surprising that 69% of people plan to apply for their next insurance policy online, with 56% intending to do so for their next savings account.

However, this shift towards online applications doesn’t mean that consumers no longer value advice. Almost three quarters (74%) of homeowners applied for their current mortgage face to face with an adviser, and 47% of those who intend to remortgage plan to speak to an adviser as part of their next application.

The figures indicate that younger people are the most likely to apply for a mortgage online, with 53% of 25-34 year olds planning to do so, compared with 19% of over 55s.Geographically, Londoners were the most likely to use an online DIY mortgage process, with 38% doing so.

Peter Dockar, Head of Mortgages at HSBC, commented on the findings:

“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.”