"Smart phones are still largely absent from the mortgage-buying process and the industry certainly hasn’t kept up in providing the technological experience that its customers enjoy elsewhere."
Twice as many millennials planning to take out a mortgage or re-mortgage would still rather deal face-to-face than arrange one online, according to research from EDM Mortgage Support Services.
Around three in four millennials (72%) expect to take out a mortgage or re-mortgage in the next five years or more. The research found that 57% of these millennials want personal contact when they negotiate a mortgage whereas 26% said they would be likely to do so online; 6% would be happy to have a conversation over the phone.
A substantial minority (41%) of millennials say they would be willing to use an app to buy a mortgage if one were to exist. One in four (25%) of millennials say they would be ‘happy’ or ‘very happy’ to take out a mortgage online using a so-called robo-advice service and/or deal with an automated adviser that is based on artificial intelligence.
Joe Pepper, Managing Director at EDM MSS, commented: “Millennials have grown up immersed in technology and like to use their smart phones for all kinds of purposes, including their banking.
“However, smart phones are still largely absent from the mortgage-buying process and the industry certainly hasn’t kept up in providing the technological experience that its customers enjoy elsewhere.
“It is clear that even millennials perceive mortgages as something that is so complicated and important as to require face-to-face explanation. Part of this could be because of the absence of technology that is up to the job.
“In time we expect this to change and all the attributes of smart technology, including speed, accuracy, broad market product offerings, security and lower costs, will be brought into the mortgage process to the benefit of all concerned, including, clients, brokers, lenders, valuers and conveyancers.”