Evaluate believes that current mortgage related comparison systems are killing the online mortgage market.
Consumers increasingly expect the internet to deliver the opportunity for them to feel more in control over what they are buying.
Evaluate says online mortgage propositions have typically failed to keep up with their expectations. As a consequence, conversions have declined sharply, which has killed the market for mortgage brokers.
Evaluate believes that the market will only resume its previous growth trajectory when consumers and brokers are provided with a proposition that meets their needs.
Revaluate’s call comes after a full internal assessment of mortgage comparison sites by Evaluate and follows a recent BBC Money Programme which highlighted a number of inadequacies regarding ‘leading’ comparison sites.
Major faults found by the programme included cold calling consumers when not requested, doing credit searches without permission, the amount of sponsored links carried on websites and some sites not showing the full ‘true’ costs of deals.
Evaluate believes that it is time to raise standards in terms of comparison sites and lead generation.
Julie Speed, national accounts director at Evaluate Technologies, says: “It is quite clear that the old model is failing. Sites that are limited to a short form generating leads for the highest paying mortgage broker will not survive the current shake-out. Nor will brokers that continue to tie themselves to this business model, as they are already telling us.
“It’s time for brokers and comparison sites to embrace a new way of working; one that enables consumers to take a more active role in the process. The first companies in both sectors to do so will gain a crucial advantage in the fight to redesign their businesses to be competitive in the market that exists post credit crunch.”