More than half (53%) of UK homeowners have not attempted to remortgage online, according to research from finova.
The report ‘Homeownership In The Digital Age’ indicated an opportunity for lenders to enhance and promote digital solutions.
finova surveyed more than 1,000 participants, including 500 borrowers and 500 brokers, to assess the challenges homeowners face in the remortgaging process.
The study found that 82% of homeowners struggled with using apps for remortgaging, highlighting a need for improved user education and interfaces.
Homeowners aged 18 to 24 showed a different trend, with 50% successfully remortgaging via app, showcasing the potential to engage older borrowers more effectively.
The research also confirmed that older and first-time borrowers prefer traditional communication methods, with 48% favouring phone calls for mortgage queries.
However, there was a growing acceptance of mobile app chats, especially among those aged 35 to 55, where 40% preferred this method.
Chris Little, chief revenue officer at finova, said: “Despite lenders rapidly expanding their tech solutions, many homeowners remain reluctant to remortgage online – a hesitation that presents a major growth opportunity for forward-thinking players in the market.
“As rates begin to stabilise and countless fixed-rate mortgage deals approach their end, now is the ideal time for lenders to bridge the gap and make the remortgaging process more seamless for borrowers.
“The appetite for digital solutions is evident, with borrowers increasingly preferring to engage with lenders via mobile chat apps.
“By investing in user-friendly, online remortgaging tools, lenders can not only enhance the borrower experience but also boost their own customer retention in the years to come.”
