You are here: Home - News -

Internet mortgages set for massive growth

  • 01/11/2000
  • 0
By Rachel Williams Uptake of internet mortgages is set to increase by 153% in the next four years, a...

By Rachel Williams

Uptake of internet mortgages is set to increase by 153% in the next four years, according to the latest Datamonitor report, UK Mortgages 2000.

In 1999 the internet accounted for 0.1% of mortgages. However, the report expects this figure to rise to 9.2% by 2004, overtaking the telephone as a distribution channel which currently accounts for 6% of mortgages.

Despite growth in the internet as a distribution channel, the role of the intermediary is not expected to weaken, and e-intermediaries are expected to play an important role. The report said: “Intermediaries will grow as a distribution channel partly as a result of the positive impact the internet will have on their business. As more customers use the internet to arrange a mortgage, they will increasingly move away from visiting a single lender’s site. Intermediaries are able to offer a range of quotes from various lenders for the same time spent on information input.”

But Tony Yorke, communications manager at i-group, was not convinced the industry will see such dramatic levels of growth. He said: “This is a staggering claim. At the moment less than 20% of the population has internet access and for many, applying online can still be a time consuming and lengthy process.”

While more borrowers will be willing to use the internet to buy a mortgage, increasing numbers will want advice before they buy their mortgage, according to the report. It said: “As products become more complex, the average consumer will be less confident in choosing them. This is particularly true of flexible mortgages, as they have numerous terms and conditions as well as various options available to the consumer.”

Natasha Plackett, PR manager at First Active, agreed. “There are now so many more lenders and so many more product offerings and borrowers simply do not understand them so they need to get advice from someone with a high level of knowledge.”

The report also found that rationalisation in lender’s branch networks will create opportunities for intermediaries. It said: “This should be a positive development for intermediaries. The demand for face to face advice will remain, but in some areas as branches close, this will not be met by a nearby branch of the bank of the customer’s choice. In this instance, borrowers are more likely to turn to intermediaries for advice.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
HMC to rebrand and launch new product range

Household Mortgage Corporation (HMC) has revealed details of its rebranding exercise as it becomes i...