A new report from market analyst Datamonitor, Online Mortgage Distribution: The way ahead?, has found advisers are still generally sceptical about the internet’s potential.
The analyst’s figures show only 47% believe consumers will definitely or probably want to complete the entire mortgage application process online. Only 4% who arranged a mortgage in the year to June 2002 did so online.
Datamonitor forecasts the online channel will account for 10% of gross advances by 2006 as growing familiarity with the internet, use of price incentives, e-signatures, and the popularity of current account and off-set mortgages all have an effect.
Alex Boorman, author of the report, said: ‘Those within the industry are now far more realistic about the prospects of online mortgage distribution. The majority recognise online services cannot be provided in isolation from more personal channels. Consumers’ desire for face-to-face advice is strong and will remain so.’