Prop Tech

How big data and technology is reshaping the UK’s mortgage industry

Gabrielle Pickard
Written by Gabrielle Pickard

Big data is set to revolutionise the global economic landscape, providing reliable, fully automated methodologies that will transform how businesses and individuals interact. Astoundingly, more data has been created and stored in the last two years than in the entirety of human history previously, testament to the explosion of this new technology, and the widespread effects of its advent. Nowhere is this more evident than in the UK mortgage industry, which is in the process of undergoing major changes.


The new technologies that big data enables us to utilise will allow for much greater precision in many aspects of mortgage lending. Appraisals, for example, can often be a sticking point in the process, with a lack of consistency in the methodological approach, compliance issues, and tricky regulations all contributing to inaccuracies and time-consuming delays.

Big data is creating a foundation for sophisticated, cloud-based appraisal software that can be used both on mobile devices and desktops, which use sophisticated algorithms to reduce the time for an appraisal from 15 to 45 days, down to as little as several hours. Searching for comparable properties to use as reference points, informing the valuation process with predictions, and suggesting adjustments based on vast quantities of data will make appraisals a walk in the park.


The valuation process is another area which will benefit massively from big data technology. A new program, called Value Risk Modelling (VRM), will allow instant assessment of the risk parameters for each application based on collected data, and providing a fail-safe way of correctly calculating and handling the case.

Using direct factors such as credit ratings, AVM confidence levels, and loan-to-value ratios, but also additional influences such as fraud risk data, existing lending exposure and environmental issues, VRM can make informed decisions that will improve the surveying procedure and the overall efficiency of the mortgage process.


Big data also allows for increased security, cutting down on fraudulent activity and providing both client and agent with a transparent lending process that is both reassuring and practically failsafe. One example of this is the new online contract method, whereby an electronic signature is used to sign the completing paperwork; the contract is then stored securely, available to all parties and reliably insusceptible to interference.

Financial institutions are busy creating new and improved ways to address international data security and privacy regulations that should allow for much safer and more dependable storage of individuals’ details in the future, paving the way for further, monumental changes.

About the author

Gabrielle Pickard

Gabrielle Pickard

Gabrielle brings more than a decade’s writing and editing experience, having been creating and editing high quality content for a wide range of publications in the property sector, reporting about the latest trends, news and developments in this fast-paced industry that doesn’t stand still for a second.

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