It has been claimed that consumers typically use a mortgage or secured loan broker because of the failings of mortgage and secured loan online offerings, rather than because they actually want to.

User experience company Foolproof’s Online Shopping Survey (OSS) found that the number of people who said they had applied for their current mortgage or secure loan online had risen dramatically from 9% in 2007 to 18% this year. And, when asked about their next mortgage or secured loan, nearly half (45%) said they would expect to go as far as apply and buy online.

Foolproof’s research found that consumers were willing to try and arrange a mortgage or secured loan online but were being forced against their natural instincts and preferences to use mortgage and secured loan brokers because the resources available to them for mortgages and secured loans online did not adequately meet their needs.

The survey, which includes both quantitative and in-depth qualitative research, also discovered that 42% of those who currently have a mortgage or secured loan used the internet when they arranged it. 84% (80% in 2007) of those looking for a mortgage or secured loan in the next 12 months intend to use the internet to find information on mortgages and secured loans and 8% (5% in 2007) expect to use a mobile phone to access the information regarding a mortgage or secured loan online.

Comparison sites now top the table as being the most popular type of site to be visited when researching a mortgage or secured loan. 81% of people going online to research mortgages and secured loans expect to visit a comparison site – up 12%v from 69% in 2007 - followed by a mortgage or secured loan lender’s site (78%). And, whilst the research found that there had been a significant increase in the last two years in the number of online consumers who expect to use a broker’s or IFA’s site, up from 18% in 2007 to 43% this year, they are still only the sixth ranked type of site to be consulted.

Foolproof concludes its research indicates that the mortgage and secured loan industry has made very little progress in the last two years in delivering a straightforward and rewarding online user experience.

Tom Wood, founding partner if Foolproof, said: “The last two years’ economic problems have focused consumers’ minds on the need for better quality information. For mortgages, consumers are rightly trying to research thoroughly the changed market, product availability and lending conditions but are being hampered by the fact that the mortgage industry has failed to make any noticeable progress in improving its online content. Because the content is so poor, they are being driven to consulting a mortgage adviser but this is not because they want to - it’s because they have to.

“Consumers have learnt to trust the internet as a place to research and buy financial products and are surprised at just how hard it is to shop for a mortgage online. Soon a lender, comparison site or even broker site will address the core consumer issues and will reap the benefits. Sites such as moneysavingsexpert and Moneysupermarket are starting to improve their propositions which could divert leads away from brokers. Also, Google is improving its search results to marginalise broker and affiliate sites that are merely lead generators in favour of sites that offer consumers relevant content and useful information.”

Posted 06/10/2009 08:59:33