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Online mortgages a threat to mortgage lenders, expert says
Mon, 19 Jun 2006
Online mortgages could become a threat to mainstream mortgage lenders, according to an analyst.

Andrew Hagger of independent advice provider Moneyfacts was speaking following the launch of Direct Line's new online tracker mortgage, which he claims offers a "very competitive rate".

However Mr Hagger states that many UK residents would prefer to deal with a mortgage provider face-to-face when making "the biggest transaction of their lives".

"As long as you [online mortgage lenders] provide the customers with adequate support, I think they are probably fine," he said.

"The situation is that while many people are happy to buy products on the net like a credit card or a savings account, when it comes to something which is probably the biggest transaction of your life like a mortgage, people are probably happier speaking to somebody face-to-face and get reassurance."

Direct Line's research showed that twice as many people would be likely to find a mortgage online if they believed they were getting the best deal available.

Mr Hagger added that if online mortgages become popular it could threaten mortgage lenders, although this is not "something that you can do overnight".

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