Online mortgages will account for 10% of all mortgage sales by 2004, according to online financial ...
Online mortgages will account for 10% of all mortgage sales by 2004, according to online financial services provider Egg.
This bold prediction was made as Egg launches its new online service, Mortgage Supermarket, which claims to give borrowers access to hundreds of mortgages at the click of a mouse. According to Egg, research shows that homebuyers are shunning the high street in favour of finding a mortgage online.
Trevor Field, director of lending at Egg, said: "We believe that more consumers are enjoying the benefits of browsing for deals, using online tools and comparing rates between smaller and larger lenders. We predict that the online mortgage market will grow to 10% of all mortgage sales by 2004.
"Egg is now well placed to become the leading player in online mortgages. Our success will stem from the fact that customers can come to us in the knowledge that they will get a mortgage suited to their needs."
Mortgage Supermarket is to offer Egg's own-brand flexible mortgage, giving customers additional access to a range of exclusive mortgages direct from a select lender panel, including the Cheltenham & Gloucester, Market Harborough Coventry and West Bromwich building societies.
Open Door Finance has also announced the launch of an internet-based mortgage sourcing and application system aimed at helping brokers compete in an electronic environment.
The system allows brokers to source products from 40 lenders, with a smaller panel of five lenders that can process an entire application online. Mortgage tracking is also facilitated.
The panel is made up of Bristol & West, Stroud and Swindon, Market Harborough, Leeds and Holbeck and Paragon Mortgages, and Open Door hopes to expand this to 12 lenders.
Using the system, brokers can also arrange conveyancing and valuations for their client using an online panel of valuers and solicitors.
The system will considerably reduce the time taken to process an application. Paperwork is virtually eliminated, case progress can be viewed at any time and a re-try facility prevents brokers re-keying data when applications are rejected.
Commenting on the launch, Mark Boleat, chairman of Open Door Finance, who previously headed up the ABI and the CML, said: "This is a niche service, aimed specifically at helping mortgage intermediaries compete more effectively in today's challenging environment. It significantly reduces the hassle of the mortgage process, saving the hard-pressed adviser both time and trouble. The system's inclusion of online tracking is a major benefit for both advisers and clients, enabling them to keep up to date with the progress of the application."
The system costs brokers a one-off charge of £250 plus VAT.
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