E-commerce mortgages have a long way to go before they are established in Europe, according to market analysis experts Datamonitor. Only 2 per cent of total mortgages outstanding in the 16 largest European mortgage markets pass through direct channels. Excluding the UK, this proportion drops to just 1 per cent. Branches were, and are, the first place people go to when they want a mortgage, says Datamonitor. It is estimated that the average bank transaction costs £1.20 sterling (€1.91) to perform. Cost of over-the-phone transactions drops to 40p sterling and an online transaction costs 10p sterling.

"The savings involved in this approach to mortgage distribution can be handed onto the customer in cheaper borrowing rates," says Datamonitor.