After the introduction across England and Wales of digital mortgages, it has been revealed that this new home-buying process has facilitated an easier way for millions of homeowners to remortgage as well as buy a new property
Using blockchain to make property buying faster
The Land Registry has announced plans to expand on its digital transformation to the property sector, all with the intention of making the process of purchasing homes far easier for buyers.
It has revealed that through its Digital Street research project, it will be using new technologies, including blockchain, for the property buying process
It has already used a blockchain prototype for house purchases through the sale of a semi-detached house in Kent, demonstrating just how easy it can be to both buy and sell a property through transferring ownership digitally.
Sign your mortgage deed
The introduction of digital mortgages by the Land Registry has been through its digital service named Sign Your Mortgage Deed. This service is now being offered by a number of High Street lenders across the country, including RBS, NatWest, Atom Bank, HSBC and Nationwide.
With this completely free service for customers to use, buyers have the ability to sign their mortgage on their phone or computer, wherever they are. This new process means there is no longer a need for pen on paper signatures, nor does it longer require independent third party witnesses to be present when these mortgage agreements are signed.
It also means printing out forms is no longer a requirement, not having to return any forms in the post, which can all end up leading to unnecessary delays, causing stress to both the buyer and seller respectively, and in the worst case scenario could end up leading the sale to fall through entirely.
Other market developments
For those looking to avoid traditional property chains, the bridging finance industry has seen tremendous growth in recent years.
Using specialist lenders, you are able to apply for property finance outside of a mainstream bank and typically complete in two to four weeks, rather than the months expected with a traditional mortgage.
The industry has funded over £7 billion in the last year, an increase from £4 million in 2016, despite typically higher interest rates than traditional banks. The largest lenders include challenger banks such as Shawbrook, Masthaven and specialist lenders such as MTF.
There are other solutions and business that are making the mortgage process simpler. The likes of Habito and Trussle have created a platform that allows you to remortgage completely online and save money through better deals.
Trussle, for example, claims that they can help homeowners make a saving of up to £300 per month, equal to £3,600 per year.