The internet continues to influence people’s buying habits and recent research has shown that although more homeowners than ever want to apply for their next mortgage online, the financial services industry isn’t making things easy for them.

The research comes from Foolproof, the UK’s second largest user experience design company, who found that that 42% of those who currently have a mortgage had used the internet when they originally arranged it.

What’s more, the report stated that the number of people who said they had applied for their current mortgage online had risen considerably from 9% in 2007 to 18% in 2009. And of those questioned about their next mortgage, almost a half said they would expect to go as far as apply and buy online.

Then the problems start though, as the users high expectations are more often than not disappointed by what they find. The research found that the mortgage industry has made very little progress over the last two years in delivering what consumers require from their lenders

Tom Wood, founding partner of Foolproof, said:
“The last two years’ economic problems have focused consumers’ minds on the need for better quality information on financial products before committing themselves to a purchase. For mortgages, consumers are rightly trying to research thoroughly the changed market, product availability and lending conditions but are being hampered by the fact that the mortgage industry has failed to make any noticeable progress in improving its online content. The net result is that in 2009 the online mortgage offering is worse than it was in 2007.

“Because it is such a poor experience for most, they are being forced against their instincts and preferences to contact a mortgage adviser rather than being able to do-it-themselves. Sites such as moneysavingsexpert.com and moneysupermarket.com are proving popular in informing online consumers and Google is making some headway in making mortgage-related search results more relevant and rewarding. But the industry collectively needs to improve its game immensely if it hopes to make the online channel more accessible to mortgage shoppers.”

It seems that the online financial services sector has some way yet to go with offering a complete user friendly experience.

Guest Article by Neil Camp