In the year many big UK banks closed their doors on hundreds of branches, the research highlights there is an appetite for digital banking – even when it comes to something as significant as taking out a mortgage.
The survey found 54% of Brits would be comfortable applying for their mortgage online, a figure which rises to 58% among 25 to 34-year-olds and to 68% amongst the 35 to 44 age group.
NerdWallet said this was particularly noteworthy when taking into account the fact 77% of the UK’s first-time buyer mortgage borrowers were aged between 25 to 44, according to the latest Office for National Statistics (ONS). Indeed, the average age of a first-time buyer is 34 years old.
Digital banking
The enthusiasm for digital mortgages is part of a wider trend which is seeing more people flock to online banking in general.
NerdWallet also found three in five (60%) Brits said they would now consider a bank with no physical branches, and 40% felt prepared to have a digital-only bank as their one and only provider.
Almost a quarter (23%) said they would want both a digital and traditional bank with brick-and-mortar branches.
Denise Ko Genovese, senior personal finance Expert at NerdWallet, said: “The shift to digital banking is very apparent and this trend is undeniably a contributing factor in bank branch closures.
“There is also an expectation as everything becomes more digital, for banks and other service providers to evolve to meet the modern needs of the public as well.”
Improving mortgage understanding
With a recent report by the Bank of Scotland suggesting a significant number of younger adults did not understand how a mortgage worked Denise believed online banking could play an important role in improving this situation.
“A large percentage of young adults are already comfortable applying for a mortgage online, but there is still more work for lenders to do,” she said.
“If banks can use their websites and apps to make more information and advice available, while smoothing out the application process, this can go some way to closing the mortgage knowledge gap for current and future generations, so that securing a mortgage online becomes second nature.”
