Just 9% of over-55s went online to search for quotes when they signed their last mortgage held back by the fear that their data security would be breached, says Contact State.
The reg tech firm adds this compares with 17% of all adults who went online to compare mortgage and equity release quotes.
Its study adds that 46% of over-55s went straight to their bank, and 63% of this group only got one quote before taking out a loan.
Older borrower’s reluctance to go online to compare deals stems from “concerns about who has access to their data,” says the report.
Overall, 62% of over-55s say they have reservations about sharing personal and financial details online to get a mortgage quote, including 30% who have reservations when it comes to sharing a phone number.
The report points out that this reticence is “understandable” as 73% of over-55s say they have been targeted by cold callers over the past year – with 30% adding they have been called more than 10 times.
Among this group 58% say receiving cold calls “left them feeling angry”, especially as 63% add they have no idea how the caller got their number.
One in seven of over-55s feel they have been forced to share their data online when looking for a financial product such as a mortgage or insurance, and 52% add that when they do share their data online they are not confident they know who has access to it.
The report says one in eight of this age group has had a “negative experience” – when getting a financial product or professional service online, with the top issue being “contacted by a company other than the one I submitted my details to”.
In this older group, 84% say they would be unhappy if they submitted their details to one company, and were called by another, with 96% adding they would be worried about the security of their data if this happened.
Over-55s say other online concerns include financial product or service pages that are not clear enough. Just over one in five of older borrowers who had a negative experience when getting a quote say: “I wanted an online quote but was called instead.”
While 19% add: “It was unclear that I would have to submit details to receive a quote.”
Overall, 39% of over-55s are less willing to share their data online than they were five years ago, and despite the huge shift to digital financial services, 69% add they would still not go online if they wanted to remortgage now.
Contact State head of mortgages and lending Thomas Brett says: “Our findings suggest that concerns about data is creating a real disconnect between over-55s and mortgage and equity release brokers who rely on online channels for their leads.
“And it seems those concerns are well justified, given so many older borrowers have had negative experiences, particularly when filling in a form or calculator online, and expecting to get a quote from one company, and then finding they are being called by someone else.
“The trouble is, these online forms and calculators are how so many mortgage and equity release brokers get their leads, and if over-55s are having negative experiences using them, they are much less likely to buy when they do eventually get put in touch with someone who can help.”
Access Equity Release adviser development manager Desmond O’Hara adds: “Lead generation is vital to the equity release market but Contact State’s research has revealed that older consumers are increasingly being misled into giving their details, and if that equity release lead is not genuine it creates a negative experience for the consumer and the provider.”
Contact State’s poll was carried out by data group Opinium Research between 4 and 12 July, among 5,000 UK adults weighted to be nationally representative.