Earlier this year, the first digitally signed mortgage was lodged with UK Land Registry. But what will this mean for the future of property transactions?
Today, very few aspects of our lives don’t involve technology. And, for our finances, this is especially true. But despite the prevalence of tech, the world of mortgage lending has remained stubbornly old-fashioned.
However, with the signing of the first digital mortgage, this could be about to change.
What is a digital mortgage?
The digital mortgage service lets buyers confirm their identity via GOV.UK Verify. Once done, they just log in and sign their mortgage deed without putting pen to paper.
Who can use it?
At the moment, the secure digital system is only available to remortgage customers. But, now that the path is set, it is expected that first-time buyers and other mortgage customers will eventually be able to use the service.
HM Land Registry has said that: “We are looking forward to rolling this out nationally and will be working with more conveyancers and lenders to do so.”
What are the benefits?
One of the most compelling reasons to take mortgages online is that it could significantly reduce the length of the home-buying process. For now, and as part of more comprehensive efforts to bring property transactions up-to-date, buyers will no longer require a witness to their signature, and documents won’t get lost in (or delayed by) the post.
Is it safe?
Yes. In fact, GOV.UK Verify is the same system that is already being used for a range of government services, including online tax returns.
What’s next?
According to studies, UK homebuyers are the most digitally active house hunters in the world. So much so that 93% of us are already using online channels to look for prospective properties. Therefore, it comes as no surprise that this digitally engaged population is frustrated with the current paper-based system.
As such, we can expect that in addition to digital mortgages, more and more of the home buying and selling process will move online. In fact, this is already taking place with HM Land Registry in the midst of an “ambitious digital transformation towards becoming the world’s leading land registry for speed, simplicity and an open approach to data”.
Looking forward, what this means is that we could eventually expect property transactions to start and finish in a matter of days, if not instantly.
At LPL, we are aware of the needs of modern buyers and do everything we can to provide a secure, swift process. Speak to one of our professionals today by calling 0333 305 5189 or by visiting www.lpropertylawyers.co.uk
What are digital mortgages?
