Data handling concerns preventing borrowers from seeking online mortgage quotes

Receiving unsolicited calls as a result of sharing their phone number is a top concern.

Related topics:  Mortgages
Rozi Jones
31st October 2022
open banking tech
"The landing pages they are seeing when they search for quotes are becoming increasingly ‘deceptive’, presenting themselves as an instant quote or calculation when in fact, they are lead generation pages"

Potential borrowers have growing concerns about the security of their personal information when seeking a mortgage quote online, according to research from regtech firm Contact State.

The research found thatbwhile just 17% began their search online the last time they looked for mortgage quotes, 34% of the same adults would go online next time. It also found that while only half (54%) got more than one quote before proceeding with their last mortgage, 73% would now get more than one quote, with 42% saying they’d get at least three, showing a clear preference for comparing mortgage deals online.

However, despite the shift to online and demand for quote comparisons to ensure they are getting the best deal, consumers have growing concerns about their data, and are becoming increasingly unhappy with the way it is being handled. Contact State found that the vast majority of consumers have at least some concerns about sharing their data to get an online mortgage quote (just 33% said they had none), while 24% say they have felt ‘forced’ to share their data to get a mortgage quote and 29% had a negative experience when getting a quote.

Of those who have had a bad experience, 24% said it was unclear they’d have to submit personal details to receive an online mortgage quote, 24% expected to receive an online quote but were called instead, and 29% were contacted by a company different from the one they submitted their details.

For most consumers, receiving unsolicited calls as a result of sharing data online is one of the biggest issues.

73% of consumers have received cold calls over last 12 months - five on average - which across the UK is a total of 193 million unsolicited calls in the last year.

63% of those surveyed said would be unhappy if they filled in a form for a quote with one company, but were called by a different one. 90% say the fact their number has been passed on makes them feel ‘concerned about their data’, 48% who received a cold call said it made them feel angry, and 14% felt vulnerable.

Data Control Matters also found that these negative experiences have resulted in 39% of people feeling less willing to share their data online than they were five years ago and that 37% admitting to having reservations about sharing their phone number to get a mortgage quote.

Thomas Brett, head of mortgages and lending at Contact State, said: “Gone are the days of getting one mortgage quote and then proceeding – people want to take more control of their financial decisions – so there is a huge opportunity for mortgage brokers to win new business. However, our data shows that the landing pages they are seeing when they search for quotes are becoming increasingly ‘deceptive’, presenting themselves as an instant quote or calculation when in fact, they are lead generation pages, and this is causing them to feel quite negative towards the entire experience. So, if brokers are buying data or leads from a source they don't understand, and the customer has had a negative experience getting to them, not only are the less likely to buy, but as the buyer of that lead, the mortgage firm/broker could well be in breach of the Consumer Duty.”

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