New research suggests that consumers are more comfortable about buying complex financial products on-line than is commonly believed. Around 12% of consumers prefer to order mortgages on-line or by telephone rather than face-to-face, according to the findings.

The survey of 2,000 people, carried out by the Alliance & Leicester, found 6% naming the internet and 6% naming the telephone their preferred method of applying for a mortgage, and this figure increases to a combined total of 23% among those who are remortgaging or buying their next home.

First time buyers prefer face-to-face meetings, with only 9% looking to apply for their mortgage via the telephone or internet.

Consumers' appetites for shopping for personal finance products over the internet has grown markedly over recent years, says Alliance & Leicester, notably for current accounts, credit cards, share dealing and ISAs.

Of those looking to apply for a mortgage over the internet, the key reasons for their preference were convenience (52%), time-saving (33%) simplicity (23%) and the belief that cheaper deals can be secured that way (18%).

Those who preferred the telephone said this was because it is more convenient (42%), saves time (31%) and is simpler (16%). However, only 2% thought the telephone would enable them to get a better deal.

Only 3% of those who prefer applying for a home loan face-to-face say it is because they don't like using the telephone, with the same proportion not using the internet because they don't trust it, indicating that it is not a fear of technology or security concerns that are stopping some people exploiting direct channels.

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