Mortgages are too high a commitment to make online applications
Since the Internet burst onto our scenes consumers in the UK have used this resource for a wide range of purchases and services, from booking holidays to making loan applications and even to do the shopping.
However, according to recent research the practise of applying for mortgages online may not be as popular as some might think, and this is probably because a mortgage is such a huge financial commitment that people prefer to discuss the finer details with someone face to face rather than via the Internet.
Although the Internet is enormously popular amongst those that want to research mortgages and find the best rates and deals, when it comes to the crunch it seems that most will abandon the actual application process online and will contact the lender directly in order to discuss and apply for their mortgage. Loans for mortgages have to be so high these days because of the rising cost of properties in the UK that it seems that people are way about doing the whole thing online, and prefer simply to find the best deals online and then speak to a 'real' person.
One of the UK's leading banks, the Alliance and Leicester, has stated that although it offers a wide range of mortgage products it will not offer online mortgages simply because there is very little demand for them. With so many queries and questions relating to mortgages, the Alliance and Leicester states that people simply don’t want to make such a large commitment online.
One spokesperson for the Alliance and Leicester stated: "What we've found, historically, is that people will get to … maybe three quarters of the way through the application online and then they abandon that and then probably call in instead."
Tom Smith
18th May 2007
More Information:
- Why Does The Interest Rate Of Your Mortgage Change?
The biggest difference between a mortgage and other types of loan is the fact that the interest rate changes throughout the term of the loan. Why is this? And which type of interest-rate arrangement is best?
- How long would you like you mortgage to run? The simple answer would be as quickly as possible, but not everyone can, which means higher repayments and more strain on the household budget.
- Mortgages – What Will Be Next?
Maybe some forty years ago mortgages were very solid things that you took out: you would stick with the same company for the entire period of the loan and you could find fixed rate deals that would also last the full twenty five years.
