Prop Tech

Can the mortgage procedure be wholly digital?

Gabrielle Pickard
Written by Gabrielle Pickard

From thermostats controlled by smart meters to self-driving cars, digitalisation is edging its way into many walks of life. Mortgages might have been a bit slow in jumping on the digital bandwagon but at last in seems they are latching on to the digital revolution.

The term ‘digital mortgages’ essentially refer to the mortgage process being carried out online. Consequently, the vital information required when applying for a mortgage such as credit history, employment status and residency, is completed online.

Whilst much of the mortgage application process can be carried out via the internet, can the procedure be 100% digital?

An automated process

As This Is Money notes, several mortgage broker companies are making reasonable strides in automating and digitalising the borrowing application process for their clients. For example, rather than having to provide paper bank statements to mortgage brokers, borrowers can download statements from their online banking portal and send them digitally to the broker, without having to leave their living room.

However, the mortgage broker is then required to scan the document and forward it to the lender, who can then check the statement and cross reference it against a credit report.

By making the process integrated and automated, critical mortgage lending procedures such as bank statement checking would be more efficient and quicker.

Whilst inroads are being made to speed up the mortgage process and make it more seamless, efficient and ‘digital’, homebuyers, mortgage lenders, brokers and estate agents are still a long way from enjoying a wholly digital mortgage process.

The human touch

We may be able to fully automate the process, so that the whole mortgage application and approval procedure is carried out online and is consequently completed more quickly and efficiently, but when it comes to something as important and complex as mortgages, human advice, knowledge and experience will never be superseded.

As Fox Business writes:

“Because home buying is a large – and often intimidating – financial decision, good advice is likely to remain at the forefront of the mortgage offering. So, if you want great advice plus the efficiencies of a digital process, it’s best to start by finding a great local lender, then interviewing the about their digital offerings.”

What are your thoughts about a fully digitalised mortgage process? Time-saving and in-keeping with the 21st century? Or too reliant on a dehumanised, anthropoid approach?

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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