paydayukPayday Loans UK

According to a recent article in Mortgage Stategy.com there are now more people searching online for payday loans in the UK than mortgage’.

Online searches for payday loans and other loan products overtook those for mortgages in July 2011, according to social marketing agency Greenlight.

Searches for mortgage-related products dropped 14% in July compared with January. There were 818,088 searches in July, down from 951,923 in January 2011. Mortgage-related products accounted for 31% of retail banking-related searches in July, down from 35% in January. But loan-related searches were up 53,543 on January’s total, accounting for 37% of retail banking searches in July, with 21% relating to payday loans.

This trend could be dues to several factors that affect the way these payday loans UK are sought after:

  • Payday loans in the UK can be applied for and received online while mortgages are generally an offline transaction.
  • Mortgages are quite difficult to get at the moment due to the economy and banks requiring larger down payments.
  • The current economic climate in the UK has lead more people to rely on payday loans recently.

The Chief Executive Officer with Mortgage Brain says that Greenlight’s research is not in-line with actual mortgage transactions in these months.

He says: “We experienced a 4.6% increase in transactions between June and July compared with January and February. Data from the Council of Mortgage Lenders also shows gross lending was £12.6bn in July, up from £9.2bn in January.”

But Frank Eve, managing director of Frank Eve Consulting, says consumers tend to first go online to search for mortgages and visit a broker or lender later, with the mortgage transaction occurring a few months after the initial search. This could account for the differing searches and transaction levels. Read full article here.

I think it would be safe to say that mortgages are not really an online product. People may compare rates, but because of the amount of money involve, most like to sit down and discuss the matter personally. There is no doubt that searches for online payday loans UK has risen lately, however, comparing their searches to mortgages really makes no sense. They are two completely different financial products.


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