"We’re still some way from seeing a completely automated mortgage market as the technology cannot yet – and may never - fully address all customer needs."
IMLA says the emergence of new digital tools and services is becoming an increasing driver of intermediary mortgage business as consumers find it quicker, cheaper and easier to access mortgage finance.
Analysis of Google Trends found that more people are looking for a broker online while fewer consumers are searching directly for the best mortgage deal. In 2018 searches for “mortgage broker” – which now automatically highlight local mortgage brokers with a web presence at the top of any Google search – reached 14-year highs, increasing by 180% in five years.
The growth in customers seeking information on mortgage brokers online has mirrored the growth of intermediary mortgage completions, with over 70% of customers now using an intermediary when changing lenders.
IMLA's research also found that the "robo-mortgage broker revolution is still a long way off".
While 38% of brokers see the rise of robo-advice as the biggest threat to their business in the next three years, IMLA believes there are a number of barriers that stand in the way of firms seeking to implement a full robo-advice model.
IMLA’s own winter 2018 survey showed that 80% of members expect less than 5% of their mortgage business will be served by web-based robo-advisers by 2020.
The report notes that brokers often successfully challenge cases that are initially turned down by the lender for falling outside its criteria, and will know which lenders usually offer attractive product transfers at the end of an initial deal.
Kate Davies, executive director at IMLA, commented: “We have already seen a number of digital advancements as the industry seeks out solutions to improve the mortgage and property transaction process. But we’re still some way from seeing a completely automated mortgage market as the technology cannot yet – and may never - fully address all customer needs.
“Our findings suggest that consumers clearly appreciate the softer skills offered by brokers. And online tools have made it easier for mortgage brokers to advertise their services and to be sought out by local property buyers seeking information and advice. The digital revolution hasn’t yet disrupted the traditional mortgage journey, but it’s certainly making it more effective.
“That’s not to say that change isn’t coming. Advancements in Artificial Intelligence and big data capture and manipulation are allowing more of the mortgage transaction process to be digitised. I’m sure we’ll see new and exciting developments in technology and delivery – and our members are very aware of the need to keep up to speed with what the market can provide and what consumers increasingly expect, so that they can stay ahead of the curve.”
