17th Apr 2018
The UK’s first digital mortgage has been signed in southeast London in a move that will simplify the process of buying a house.
If rolled out nationally, borrowers will be able to set up an online account and sign their mortgage deed when and wherever they like. The mortgage industry is typically paper-based and can take a long time to process documents. Many documents often need signing in front of a witness before being sent my post and reports suggest that organisations face a fall in productivity when employees take time out to undergo the home-buying process.
The new digital mortgage service allows people to confirm their identity in the same way that government services like tax returns do – using GOV.UK Verify.
The online service will also mean that borrowers won’t need a witness for their signature and it eliminates the possibility of forms getting lost or delayed in the post.
The service is not yet live and is currently being tested out for people who want to remortgage. It is a service jointly operated by HM Land Registry, Coventry Building Society, Enact Conveyancing and GOV.UK Verify.
Jo Causon, CEO of The Institute of Customer Service says that moving services online and making life easier is positive for customers. However, she warns organisations that they must prioritise data security.
“Cyber threat is ever-present and will only rise as the Internet of Things ensures more and more devices are connected. Invest in robust cyber security, test your systems, monitor constantly. And if an incident happens, communicate promptly and honestly with your customers,” she says.