Almost three quarters of first time buyers (72%) cited convenience as the reason they use the net as their main source of information on getting a mortgage, whilst a further 10% opted to use this method because it was so straightforward. Only 3% of the group chose to go online to benefit from better mortgage deals.
Over one third of people (39%) still seek the reassurance of face-to-face contact with their preferred lender or Independent Financial Adviser (IFA), and one in five (20%) first time buyers turn to friends and family to recommend the best mortgage for their first home.
Paul Cooper, Head of Mortgages at Alliance & Leicester, said: "It’s encouraging to see that first time buyers are tapping into the wealth of information available on the internet to find a great value deal from a reputable lender. The findings show that they recognise that this is a convenient and straightforward way of gaining information to compare mortgages. However, it is interesting to note that only a small minority are aware that they could benefit from better deals by going online.
Paul Cooper continues: "Many lenders now allow customers to apply for mortgages online and quite often there are better deals available on the internet, for instance Alliance & Leicester offers some preferential rates to customers who are happy to apply online. We continue to provide customers with a choice of ways to deal with us, to suit their individual needs."
The findings are from Alliance & Leicester’s First Time Buyer research — the first annual look into the intentions and attitudes of first time buyers — people who have bought a property in the last 12 months, and those who intend to make a purchase within the next year.
Why first time buyers choose particular sources
* One in three (33%) first time buyers identified convenience as the main motivating factor in their decision to seek mortgage advice from a particular source, compared with 15% who choose a process that is simple and straightforward.
* The reassurance of face-to-face contact is still important to first time buyers with 12% preferring to seek advice that offers this.
Regional findings:
* Scots are the most likely to seek face-to-face advice from their lender with 43% preferring the personal contact compared to just 35% of Londoners.
* Londoners are the most happy to seek mortgage information online (30%), compared with potential buyers in the Midlands and Wales, where just 22% would logon for advice. A more popular source of information in the Midlands and Wales is the family — as many as one in five (21%) entrust their mortgage decisions to their nearest and dearest.
* 22% of first time buyers in the South of England turn to their relatives for mortgage solutions, compared with just 14% in Scotland.
* As many as 9% of Scots won’t actively seek information when choosing a mortgage for their first home.
