100% rise in number of people who would seek a next mortgage quote online

Consumers are becoming savvier than ever before when it comes to getting mortgage quotes, and mortgage firms that just ‘buy data’ are going to get left behind, according to the latest insights from RegTech firm Contact State.

Data released from Data Control Matters Contact State’s inaugural report into how consumer data is shared online – revealed that when it comes to getting mortgage quotes, there has been a shift from traditional routes like brokers and banks, towards online, and that consumers are getting more and more quotes and information before they make a decision, but that concerns about data sharing is rising.

The financial marketing experts 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. However, when UK adults were asked where they would search for their next mortgage, 31% said 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, only half (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 were looking for a mortgage now, 73% of mortgage holders said they would get more than one quote, with 42% saying they’d get at least three.

However, while more people than ever are choosing to get mortgage quotes online, 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 ID (40%).

Furthermore, 28% said they would not be happy sharing their email address and 37% their phone number; almost one in three (29%) have had a negative experience when doing so, the top issues being:

  • being called, emailed and texted too much (30%)
  • being contacted by companies other than the one they submitted details to (29%)
  • they were expecting an online quote but got a call instead (24%)
  • When asked about the last issue in general, 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, it is understandable that 31% of people feel less willing to share their data online now than they were five years ago and so many have reservations about sharing their phone number to get a mortgage quote.

Thomas Brett, head of mortgages and lending at Contact State said that the data highlights 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.

“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.

“There are currently almost 2 million people on SVR and tracker rate mortgages, and with interest rates rising, these consumers are going to be looking to remortagage, 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, 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/broker could well be in breach of the Consumer Duty.”

Alain Desmier, co-founder of Contact State, added: “At Contact State, we are working hard with lead generation buyers and sellers across the UK to clean up the industry, creating a clear and transparent customer journey so firms know exactly how that customers’ number was obtained to help ensure customers never feel they have been forced or tricked into sharing their details and that ‘how did you get my number’ becomes a question of the past.”