15 June 2006

Online mortgages could be on the verge of rapid growth, according to a survey.

The study, conducted by Direct Line, shows that almost twice as many people would be likely to use the Internet to find a mortgage if they believed it would offer the best value.

Some 80 per cent of respondents believe that online mortgages will become more popular in the future, while 73 per cent of respondents expect to see lenders offering their lowest mortgage rates online as well as other incentives.

In total, 94 per cent believe that online mortgages will become more popular because people because of increased Internet activity such as shopping and banking.

David Dyer, commercial director for Direct Line mortgages, commented: "We believe that the online mortgage market is ready for strong growth in a similar way to the increase in recent times of grocery, music and book shopping online.

"Many people realise that the best way to achieve value for money is to go online, as they do currently when taking out a personal loan. That same philosophy will increasingly apply to buying your mortgage."

Recent comment from Deloitte suggested that the growth in online insurance sales might lead to face-to-face trading disappearing altogether.

© Adfero Ltd

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