However, concerns about data sharing are growing
When it comes to getting mortgage quotes, there has been a shift from traditional routes like brokers and banks towards online platforms, a recent study has shown.
For its inaugural report into how consumer data is being shared online, regtech firm Contact State commissioned a survey that asked 5,000 UK adults where they began or would begin their search for mortgage quotes.
Among those who have held a mortgage, 17% began their last search online. But when asked where they would search for their next mortgage, almost a third, or 31%, of the respondents said they would do so online. Among those who have previously held a mortgage, 34% would now being their search online – a rise of 100%.
Furthermore, when asked about the last time they got a mortgage, just over half, or 54%, got more than one quote before proceeding, and the majority of those who did get more than one quote only got two. Yet if they were looking for a mortgage now, 73% of mortgage holders said they would get more than one quote, with 42% saying they would get at least three.
Read more: ‘Evolution is vital in the mortgage market’.
However, while more people than ever are choosing to get mortgage quotes online, Contact State noted that concerns about sharing data are growing, and consumers are becoming increasingly unhappy with the way in which some mortgage firms are handling their personal information.
One in four (25%) of all respondents said they would have concerns about sharing details about their occupation to get an online mortgage quote, a third (33%) would not want to disclose salary details, while more than two in five (45%) would not share spending figures or their identification (40%).
In addition, the survey also found that 28% would not be happy sharing their email address and 37% their phone number. Some 29% have had a negative experience when doing so, as 30% experienced being called, emailed, and texted too much, 29% were contacted by companies other than the one they submitted details to, and 24% who expected an online quote got a call instead.
Sixty-three per cent (63%) of all respondents said they would be unhappy if they filled in a form for a mortgage quote with one company, but a different company contacted them instead.
Given these negative experiences, 31% of people said they less willing to share their data online now than they were five years ago.
Thomas Brett, head of mortgages and lending at Contact State, said that the survey results highlight both the opportunities and risks for brokers.
“Gone are the days of getting one mortgage quote and then proceeding – people want to take more control of their financial decisions,” Brett pointed out. “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.
“As a result, 29% of consumers have had a bad experience when searching online for mortgage quotes, and 24% say they felt they were forced into sharing their data.”
Read more: GDPR isn’t going to kill you.
Alain Desmier, co-founder of Contact State, added that with interest rates rising, a large proportion of the almost two million people currently on standard variable rates and tracker rate mortgages are going to be looking to remortagage, and that mortgage firms that play their cards right will put themselves at a distinct advantage.
“As consumers increasingly look for mortgage quotes online, there is a huge opportunity for mortgage brokers to win new business,” Desmier said. “However, if they buy data or leads from a source they don’t understand, not only is the quality of the customer enquiry going to vary wildly, but if that customer journey has been negative, as the buyer of that lead, the mortgage firm or broker could well be in breach of the Consumer Duty.”
Contact State’s consumer research was carried out by Opinium Research from July 4 to 12 among 5,000 UK adults weighted to be nationally representative.
