Monday, November 21st, 2016
A recent survey targeting Millennials, suggested that around 40 per cent of those surveyed would happily use a mobile App (i.e. an application or self-contained program/piece of software as downloaded to mobile devices) in order to obtain a mortgage. It also confirmed that up to 50 per cent of them would willingly take out a mortgage with one of the new relatively small retail banks (otherwise known as “Challenger Banks).
Of the Millennials surveyed, over 35 per cent say they would be “unhappy” to use such a service and nearly 40 per cent were “undecided” or did not know enough to commit either way. Delving deeper, 75% of those unwilling to use an App felt that that something as important as a mortgage advice should involve an experienced mortgage adviser either in a face to face meeting, or alternatively over the telephone.
Although two of the perceived benefits cited for using App to obtain a mortgage included speed and convenience, concerns still exist around the potential for greater mortgage fraud and as to whether or not such a service could actually be deemed as giving ‘mortgage advice’ anyway.
Despite the resistance expressed, roughly 60 per cent of those surveyed said they would be happy if their mortgage lender provided an App for use by existing customers who were looking to change their deal. However, as the survey has shown, dealing with an automated mortgage adviser where the decision is based on artificial intelligence is seemingly not for everyone, so whilst so called “Robo” mortgage advice is not a new phenomenon, it is a concept that is likely to be deliberated for years to come.
There is no doubt that even those who might regard themselves as “Tech savvy” would still prefer to discuss something as important as mortgage advice face to face with a specialist. That said, the distinctly digital approach taken by many of the Challenger Banks will mean that some of the more traditional lenders may have to evolve digitally in order to remain competitive and that could mean greater choice for the consumer no matter what route they choose.
Here at Caboodle Financial Services Limited of Sutton Coldfield, Birmingham, we work very hard to ensure that, subject to eligibility our clients get the very best mortgage in all the circumstances.
For mortgage advice tailored for you, call us today on 0121 308 9114 or just click HERE to contact us by email and we will be delighted to do our very best to advise you!
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114