An interesting new report from EDM Mortgage Support Services has revealed that 41% of people would take out a mortgage via an app, if one was available.
Presently, features such as landlord insurance can be taken out quickly online, but it appears that mortgages would also prove popular.
Mortgages via applications
31% of respondents said that they would definitely not mortgage using an app. However, 61% said that they would happily process their mortgage should their current provider give them an app option.
25% of millennials noted that they would be either ‘happy’ or ‘very happy’ to take out a mortgage online, using a robo-advice service or deal with an advisor based on artificial intelligence.
36% said that they would not be tempted into doing so, while 39% remained neutral.
Of those that said they would have no qualms using an app, 59% cited speed as their main reason. 41% said they would be attracted to the option of getting a mortgage at any time, 37% felt they could get a better deal, while 15% believe they would get better accuracy.
75% of those unwilling to use an application for their mortgage application said they felt such an important process should be explained face-to-face. 21% were worried about the risk of fraud.
Joe Pepper, Managing Director at EDM, noted: ‘Millennials are the most tech-savvy generation ever. While our research shows many of them still prefer to negotiate something as important as a mortgage face to face, the fact remains that technology is an inherent part of their lives. The digital approach of the challenger banks will increasingly appeal to them going forward and traditional lenders will have to become more digital themselves if they are to compete with the challenger banks in the longer term.’