More than half – 53% – of homeowners have not attempted to complete a remortgage online, research from a mortgage software company found.
Finova carried out a survey of 500 borrowers and 500 brokers for its Homeownership In The Digital Age report, and said these findings suggested there was an opportunity for lenders to create and promote digital solutions for remortgages.
The survey was conducted to determine how time-consuming the mortgage process was and found that while lenders were expanding digital options, borrowers were either unaware these existed or found them hard to use.
Finova’s survey found that 82% of homeowners did not find it easy to remortgage using an app, which the firm said indicated a need for more user-friendly platforms.
However, younger borrowers aged between 18 and 24 were more likely to understand the process, with half saying they had successfully remortgaged using an app in the past.
Finova said lenders also needed to cater to older borrowers who might be less tech-savvy.
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Additionally, the study revealed that older and first-time borrowers preferred being contacted by phone or email.
Nearly half – 48% – of homeowners said phone calls were the most effective way to handle mortgage-related queries.
However, there did seem to be a growing preference for mobile app chats among younger homeowners and those more familiar with technology. Some 40% of respondents aged 35-55 preferred to communicate with lenders on mobile app chats over other channels.
This highlighted an opportunity for lenders to refine their digital communication strategies, Finova said.
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.”
The same report found that some borrowers did not find the technology solutions offered by lenders to be beneficial.
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Over half of UK homeowners haven’t tried remortgaging online – Finova
