The mortgage industry has undergone a significant digital transformation over the past 18 months, but we’re not stopping there… Read on to find out about what changes we’d like to see in the industry in the coming months and why the market is just scraping the surface with mortgage tech.
As we approach the end of lockdown restrictions, it’s important that the mortgage industry reflects on the technological developments made in recent months as well as future growth plans. Take a look at our wish-list for the industry for the coming months!
The industry must continue to develop sourcing tools at pace. With demand and average house prices at the highest level in recent memory, clients may struggle to find something in their price range without the help of the latest tech. Digital sourcing tools remove the legwork from sourcing, leaving brokers with more time to focus on progressing applications, and continued development will make this process even better.
Many buyers are pushing to complete purchases before the end of June in order to save up to £15,000 in stamp duty, while others are aiming for the tapered deadline at the end of September, creating a significant spike in demand. HMRC recently revealed that UK residential transactions this April were 179.5% higher than April 2020, at 117,860. This demand will also be topped up by the launch of the First Homes scheme in the autumn.
It is therefore crucial that the industry works together to speed up the approval process by extending the range of automatic DIPs on offer. As part of this aim, we integrated with Barclays and Halifax Intermediaries to offer one-click DIPs through our API connection and extended our partnership with Halifax Intermediaries in May to include their 95% LTV mortgages and all other purchase products, and we’ll be connecting with more lenders in the future.
The ‘December Fraud in the Wake of COVID-19: Benchmarking Report’ from the Association of Certified Fraud Examiners showed that 77% of respondents had observed an increase in the overall level of fraud since the onset of the pandemic, highlighting the importance of keeping security high on the mortgage industry’s agenda. However, research from financial consultancy Duff & Phelps also revealed that 81% of financial services professionals believe that digital ID would help prevent financial crime.
Luckily, we are already ahead of the curve, having announced an exclusive partnership with Digidentity, the mortgage market’s premium digital ID provider, in November. The leading digital ID verification service significantly reduces both the risk of manual errors and time taken to verify an applicant’s identity.
Though the industry has made significant headway in the past eighteen months, we must continue to drive for change if we are to reach the full potential of mortgage tech. Book your demo now to see how our sourcing tool, automatic DIPs and bank-grade security can help revolutionise your business.