Increasing number of online remortgages

The preference for arranging a mortgage online which increased 7% month on month. The research, based on figures for May this year, has also revealed that the average online borrower is male, 38 years old and requires a remortgage for £150,000.

As the competitiveness of offset mortgages improves, the popularity of taking these deals online grows, with 1 in 4 of all loans arranged having this facility attached to them. Other popular genres of product include buy-to-let, which made up 19% of total applications. The average mortgage of £150,000 is used to finance a house purchase of £259,000, which is 4% up on April, so the average loan-to-value is a very conservative 58%.

Charcolonline's data reveals that the average online mortgage borrower is a 38 year old male, but shows that 52% if applications are made jointly, with 36% from single males and just 12% from single females. However, the average age for single female applicants is also in the late 30s.

Of all applications submitted in May, 1 in 5 were for buy-to-let mortgages with the remaining 80% applying for a residential deal. Of this, 64% were for remortgages, 23% for home-movers and 13% for first time buyers.

Candice Hodgson. Marketing Director at Charcolonline said, "The popularity of arranging a mortgage online continues to develop as more and more people become savvier about their finances. This growing knowledge is reflected in our research which has found that remortgaging leads the way."

Hodgson continued, "What is becoming clearer by the day is that online borrowers are far more likely to opt for pure product value over lender loyalty. We need look no further than the recent popularity of offset mortgages to prove this. As these types of products have become as competitive as their vanilla counterparts, they have sold very well online. I have little doubt that the attractiveness of arranging a mortgage online will continue to increase."

Charcolonline, which attracts more than 200,000 unique users a month, provides many features that it says are critical in arranging a new mortgage:

- Mortgage Wizards that are tailored to each specific customer type. These include first time buyers, home-movers, remortgagers and buy-to-let investors. This enables consumers to run targeted, personalised comparisons to find the best deal for them.

- Mortgage Calculators to illustrate how much you can borrow, the cost of repaying the loan, savings to be made by remortgaging and the benefits of having a flexible mortgage.

- Best Buy Tables that are continually updated, covering all types of loans, which include John Charcol market-leading exclusives that are not available elsewhere.