HSBC predicts major rise in online mortgage applications

Posted on Tuesday, May 6 by Joy Tibbs

Around 16% of homeowners applied for their current mortgage online and, according to HSBC, this is set to double, with 33% saying they are likely to apply for their next mortgage online.

More and more UK consumers are managing their finances online, believing it to be quicker (63%), more convenient (54%) and more cost-effective (43%). More than half of consumers also expect to apply for insurance policies (69%) and savings accounts (56%) online the next time round. 

Around 74% of mortgage holders applied for their current mortgage face-to-face. With the advent of Mortgage Market Review (MMR), it is clear that consumers still value advice, with 47% of homeowners who expect to remortgage planning to speak to an adviser face-to-face when arranging their next mortgage 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.”

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