Mortgage customers moving online despite rising data concerns, study finds

Around three in 10 consumers (29%) have reported a ‘bad experience’ when searching online for a mortgage quote, new research by regtech firm Contact State has found.

The findings also suggested that almost a quarter (24%) felt they were forced into sharing their data.

Research released from Contact State’s inaugural report, Data Control Matters, which is released in full later this month, revealed that when it comes to getting mortgage quotes, there has been a shift from traditional routes such as brokers and banks, towards online.

Contact State 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 people 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, reflecting a rise of 100%.

However, the report also stated that while consumers are getting more quotes and information before they make a decision, concerns about data sharing are on the rise.

One in four (25%) 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%).

The findings also revealed that 31% of people now 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.

Head of mortgages and lending at Contact State, Thomas Brett, commented: “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.

“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.”

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