Twice as many millennials prefer to negotiate a mortgage face to face rather than online

19 Oct 2016
olco.tech
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Twice as many millennials prefer to negotiate a mortgage face to
face rather than online

19th October 2016

• 57% of those millennials planning to take out a mortgage want personal contact; 26% say willing to do it online [2]
• Around three in four (72%) millennials expect to take out a mortgage or re-mortgage in next five years or more [2]

Despite being seen as the most internet-savvy generation ever, twice as many of those millennials1 planning to take out a mortgage or re-mortgage in the next five years or more would still rather deal face-to-face than arrange one online, new research2 by EDM Mortgage Support Services’ (MSS) reveals.

Around three in four millennials (72%) expect to take out a mortgage or re-mortgage in the next five years or more. The research found that 57% of these millennials want personal contact when they negotiate a mortgage whereas 26% said they would be likely to do so online; 6% would be happy to have a conversation over the phone.

A substantial minority (41%) of millennials say they would be willing to use an app to buy a mortgage if one were to exist. One in four (25%) of millennials say they would be ‘happy’ or ‘very happy’ to take out a mortgage online using a so-called robo-advice service and/or deal with an automated adviser that is based on artificial intelligence.

Joe Pepper, Managing Director, EDM MSS, commented: “Millennials have grown up immersed in technology and like to use their smart phones for all kinds of purposes, including their banking.

“However, smart phones are still largely absent from the mortgage-buying process and the industry certainly hasn’t kept up in providing the technological experience that its customers enjoy elsewhere.

“It is clear that even millennials perceive mortgages as something that is so complicated and important as to require face-to-face explanation. Part of this could be because of the absence of technology that is up to the job.

“In time we expect this to change and all the attributes of smart technology, including speed, accuracy, broad market product offerings, security and lower costs, will be brought into the mortgage process to the benefit of all concerned, including, clients, brokers, lenders, valuers and conveyancers.”

EDM Mortgage Support Services believes strongly in mobile technology and has recently partnered with Stroma to deliver a mobile application as part of EDM’s VEX platform.  VEX enables lenders to distribute work to, and receive work from, qualified surveyors. Surveyors can also use it to capture information at a property and upload it straight into VEX for communication to lenders.

1 Note: millennials defined as UK adults aged between 18 and 35 years
2 Source: Consumer Intelligence. Research carried out among 515 UK millennials, 23 August to 8 September 2016

NOTES TO EDITORS

About EDM Group: Headquartered in London, EDM Group employs over 1,400 people across the UK and US. For the financial year 2014/2015, the firm reported an annual turnover of £70 million. In September 2015, EDM Group was ranked 43rd in the annual Sunday Times Hiscox Tech Track 100 league table, up from 57th in 2014 – a reflection of the fast-growth success of the firm and its position as a leading, global information management and digital transformation specialist. In June 2016 EDM Group was ranked number 1 in the annual Sunday Times HSBC International Track 200.

EDM Group combines best-practice consulting and technical experience to develop bespoke outsourced solutions for a range of clients across the private and public sectors. The success of the firm has been built on its powerful Digital Mailroom document scanning and storage capability, which continues to be a core, in-demand product offering. EDM Group’s growing client base spans sectors including financial services, automotive, professional services, private healthcare, and the public sector (central and local government, and NHS). Specific clients include HMRC, Legal & General, Friends Life, Bupa, Avis Budget EMEA Ltd, Nationwide Building Society, Barclays, Santander, Companies House, Lloyds Banking Group, Grant Thornton and healthcare providers including NHS Trusts and BMI hospitals. EDM Group is accredited to ISO standards for Information Management Systems (ISO27001), Environmental Management (ISO14001) and Quality Management (ISO9001).

About EDM Mortgage Support Services: EDM MSS offers a range of technology products to help clients manage the various stages of the mortgage process.  It enables lenders to receive and exchange data with third parties such as surveyors, solicitors, brokers and asset managers securely and cost effectively. The platforms, including PRISM (Portal for Risk Information Sharing in Mortgages), Residential and Commercial Valuation Exchange and LPA Exchange support key transactions within mortgage lending.  EDM MSS’ customers include Nationwide, Santander, Bank of Ireland, Barclays, One Savings Bank, Virgin Money and Lloyds Banking Group.

For media enquiries:
Stephen Sheppard / Hugh Fasken / Judith Massey / Emma Castle – Citigate Dewe Rogerson, 020 7638 9571