Internet loans becoming more popular

Consumers are becoming increasingly confident about arranging a mortgage over the internet or telephone, research revealed today.

Around 12% of people say the internet or telephone is now their preferred way of applying for a mortgage, rising to 23% among people who are remortgaging or buying their next home.

But overall, the majority of people still prefer sorting out their home loan face-to-face, with 88% of those questioned saying this was their preferred option.

First-time buyers remain most cautious, with 91% still preferring a face-to-face meeting when arranging their mortgage. Just 9% are prepared to sort it out over the internet or telephone, according to Alliance & Leicester.

The main reason (52%) people gave for preferring to apply online or by phone was convenience, while 33% said it saved time. Londoners (18%) are most likely to apply for a new loan over the telephone or internet, while those in Yorkshire and Humberside are least enthusiastic (2%).