41% of millennials would mortgage through an app

More than two in five (41%) millennials say they would be willing to use an app to buy a mortgage if one were to exist, and over half would take out a mortgage with a challenger bank, according to EDM Mortgage Support Services.

Related topics:  Mortgages
Rozi Jones
26th October 2016
Social media phone tech
"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."

Only 8% said they would not consider dealing with challenger banks, but nearly a third (31%) say they would definitely be unwilling to mortgage through an app. Although three in five (61%) said they would be happy if their mortgage lender were to provide an app.

25% of millennials say they would be ‘happy’ or ‘very happy’ to take out a mortgage online using a robo-advice service and/or deal with an automated adviser that is based on artificial intelligence. Over one in three (36%) say they would be unhappy to do so and 39% were neutral or did not know.

Of those millennials willing to use an app, 59% say their reasons for doing so would include the higher speeds available. Other reasons cited include: being used to using apps (50%); the ability to arrange a mortgage at any time (41%), getting a better deal (37%), greater accuracy (15%) and the reduced risk of fraud (5%).

Three in four (75%) of those who would be unwilling to use an app say they think something as important as a mortgage should be explained face to face and 21% cite the risk of fraud.

Joe Pepper, Managing Director, EDM MSS, commented: “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.”

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