Would you be happy to get a mortgage online?
Over half (54%) of Brits are comfortable applying for a mortgage online or via an app, without any human interaction or speaking to an adviser, said NerdWallet.
The price comparison site said that the figure rises to 58% amongst 25 to 34-year-olds, and higher still amongst 35 to 44-year-olds, with over two-thirds (68%) claiming they are comfortable using digital means to acquire a mortgage.
But it’s not just digital natives that are happy to take the online route to a mortgage. Over a quarter (27%) of those aged 45 to 64, and two in five (41%) of those aged 65+, said they would be comfortable taking out a mortgage online.
Digitisation of banking
The research suggests that this is part of a much wider trend, as the ‘digitisation’ of the high street continues and people move increasingly towards online services.
Three in five (60%) Brits say they would now consider a bank with no physical branches, and 40% feel prepared to have a digital-only bank as their one and only provider. Almost a quarter (23%) said they want both a digital and traditional bank with bricks-and-mortar branches.
Denise Ko Genovese, a senior personal finance expert at NerdWallet, said: “The shift to digital banking is very apparent and this trend is undeniably a contributing factor in bank branch closures. There is also an expectation as everything becomes more digital, for banks and other service providers to evolve to meet the modern needs of the public as well.
“24 hour and remote access, immediate transactions, ongoing budget tracking, and potentially quicker mortgage applications are just a few benefits online banking can provide, but we are in a time of transition and there is clearly still a role for physical branches in the banking landscape.”
She added: “A large percentage of young adults are already comfortable applying for a mortgage online, but there is still more work for lenders to do. If banks can use their websites and apps to make more information and advice available, while smoothing out the application process, this can go some way to closing the mortgage knowledge gap for current and future generations, so that securing a mortgage online becomes second nature.”