Consumers prefer face-to-face dealings when seeking a mortgage. A recent Council of Mortgage Lenders (CML) poll found 79% of borrowers opt for the personal touch, with 83% among first-time buyers. Of 1,067 borrowers, just nine used a computer to approach a lender, with another two using digital television.
Stuart Glendinning, director of The Professional Adviser Alliance (PAA), said: ‘The public desperately lacks the confidence to apply online and needs the reassurance of a professional service.’ The PAA was set up after technology platform, moneysupermarket.com, found fewer than 2% of visitors applied online.
The poll also highlighted a decline in the number of mortgages linked to an endowment policy. Repayment mortgages now comprise 58% of the total, compared with 40% in 2000. Since 2000, endowment mortgages have fallen from 57% to 39%.
Peter Williams, deputy director general of the CML, said: ‘It is encouraging the majority of borrowers are managing their mortgage debts well. But the uncertain economic outlook makes it more important for borrowers to think about how they would manage if interest rates rise or their income falls.’