The internet is fast becoming the place for first time buyers to hunt for mortgage advice according to Alliance & Leicester’s First Time Buyer research which found that a quarter of first time buyers (26%) choose to surf the web to gen up on their mortgage knowledge.

Almost three quarters of first time buyers (72%) cited convenience as the reason they use the net as their main source of information on getting a mortgage, whilst a further 10% opted to use this method because it was so straightforward. Only 3% of the group chose to go online to benefit from better mortgage deals.

Over one third of people (39%) still seek the reassurance of face-to-face contact with their preferred lender or Independent Financial Adviser (IFA), and one in five (20%) first time buyers turn to friends and family to recommend the best mortgage for their first home.

Paul Cooper, Head of Mortgages at Alliance & Leicester, said: “It’s encouraging to see that first time buyers are tapping into the wealth of information available on the internet to find a great value deal from a reputable lender.”

“The findings show that they recognise that this is a convenient and straightforward way of gaining information to compare mortgages. However, it is interesting to note that only a small minority are aware that they could benefit from better deals by going online.”

“Many lenders now allow customers to apply for mortgages online and quite often there are better deals available on the internet, for instance Alliance & Leicester offers some preferential rates to customers who are happy to apply online. We continue to provide customers with a choice of ways to deal with us, to suit their individual needs.”
The findings are from Alliance & Leicester’s First Time Buyer research – the first annual look into the intentions and attitudes of first time buyers – people who have bought a property in the last 12 months, and those who intend to make a purchase within the next year.

Why first time buyers choose particular sources

One in three (33%) first time buyers identified convenience as the main motivating factor in their decision to seek mortgage advice from a particular source, compared with 15% who choose a process that is simple and straightforward.
The reassurance of face-to-face contact is still important to first time buyers with 12% preferring to seek advice that offers this.

Regional findings:

Scots are the most likely to seek face-to-face advice from their lender with 43% preferring the personal contact compared to just 35% of Londoners.

Londoners are the most happy to seek mortgage information online (30%), compared with potential buyers in the Midlands and Wales, where just 22% would logon for advice. A more popular source of information in the Midlands and Wales is the family – as many as one in five (21%) entrust their mortgage decisions to their nearest and dearest.

22% of first time buyers in the South of England turn to their relatives for mortgage solutions, compared with just 14% in Scotland.

As many as 9% of Scots won’t actively seek information when choosing a mortgage for their first home.