First Direct has launched its first online-only mortgage, offering a two-year tracker deal currently at 4.19 per cent, reverting to a long term rate of 6.0 per cent.
Many financial products have switched to online-only provision, incentivising the loss of overheads to themselves with competitive rates for their customers.
Mortgages have proved largely resistant to the crossover however, with many homeowners reluctant to take on such a large commitment without face-face contact.
First Direct is gambling that increasing numbers are prepared to make the leap of faith however, with almost half saying that they would if they were sure they would get the best mortgage rate.
“Many people realise that the best way to achieve value for money is to go online, as they do currently when taking out a personal loan,” said David Dyer of Direct Line.
“That same philosophy will increasingly apply to buying your mortgage.†††
“We believe that the online mortgage market is ready for strong growth in a similar way to the increase in recent times of grocery, music and book shopping online,” he added.
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