The majority of homeowners use search engines to find mortgage advice and many do not check if it is from a qualified or regulated source.
Research by Boon Brokers has found 81 per cent of people use search engines to find mortgage advice or information and a massive 74 per cent do not always check if the source is qualified or regulated.
The findings were published last month in ‘The Search Engine Trap: How Consumers Are Misled on Mortgage Advice’ report, which highlighted the disconnect between how mortgage advice is consumed online and where trustworthy and regulated support actually lies.
Chris Days, mortgage and protection broker at GoMortgage, said he is not surprised at the results but warned acting on poor or unregulated advice can have serious consequences.
He said: “I’m not at all surprised that 81 per cent of people are turning to search engines for mortgage advice. In today’s digital world, convenience is all people deem to really care about in general, and people want quick answers.
The real issue is where they’re getting that information from as there is so much bad information online
“On one hand, it’s great that mortgage information is more accessible, it shows people are actively looking to educate themselves.
“But the real issue is where they’re getting that information from as there is so much bad information online, especially on social media from people who shouldn’t be giving advice.
“The fact that 74 per cent don’t always check if the source is qualified or regulated is definitely a worry.
“Mortgages are one of the biggest financial commitments people make and acting on poor or unregulated advice can have serious consequences – from being declined by lenders to ending up on a product that’s completely unsuitable.”
Using search engines for mortgage advice varied between the genders with 40 per cent of men using this option, compared to 24 per cent of women.
Verification of sources
The analysis, which surveyed 1,000 UK homeowners with mortgages across all regions and age ranges, also found 65 per cent do not consider verified regulation, such as FCA registration, as a trust factor.
Instead 41 per cent cited customer reviews as a key factor in trusting online advice.
The research found that 43 per cent of those polled were unaware that search engine optimisation drives top search engine rankings.
Worryingly, the results also unveiled older homeowners are 60 per cent more likely than younger ones to wrongly assume Google’s top-ranked mortgage advice is regulated.
Gerard Boon, managing director of Boon Brokers, said it is important to make the distinction between verified and unverified reviews.
He added that trusted review platforms, such as Trustpilot, Feefo and Yelp, can provide useful insights into how a company or service operates and is the reason why so many reputable companies stress their brilliant customer service through reviews.
However, he added it is important consumers make the difference between the two types of reviews.
He said: “If reviews are verified on those trusted platforms, this means all clients that have gone through the company’s service, from start to finish, have received an invitation to review.
“If you see a company with verified reviews, it means that they do not pick and choose only the best reviews to showcase their services. Verified reviews also confirm that the review is genuine.
“However, the problem that some consumers are facing today is that they can often find a whole host of reviews on public forums or company websites that are not verified, or that come from an unaccountable source.
“As such, these unverified reviews can sometimes provide misinformation and in some cases be a simple form of manipulative marketing from untrustworthy sources.
“The fact that 74 per cent of people don’t consistently verify if their mortgage advice comes from a qualified or regulated source is not only concerning, but it’s a statistic that actively demonstrates the power of search engine rankings in widespread consumer advice.”
Aamina Zafar is a freelance financial journalist
