Failure to keep up with technological developments may be making it harder for some people to arrange mortgage finance.
Research from GBG has suggested that the old-fashioned way in which people apply for mortgages is making life harder for first-time buyers.
Part of the problem is the reliance on providing proof of ID and addresses with original documents, rather than printed copies. This is an issue as millions opt to receive paperless statements, with younger people most likely to prefer the digital route, therefore making it harder to supply acceptable documentation.
Little wonder then that more than third said the mortgage application process was stressful, while a similar number described it as a complicated process. The study found that the average homeowner took over three hours to source all of the paper documents they needed to supply for their application.
Given how quickly your identity can be verified online for other forms of borrowing, it seems crazy that the mortgage market is so behind the times. This isn’t a problem isolated to the application stage either; there is room for improvement on the use of technology throughout the homebuying process. Better use of technological developments will speed up the entire transaction, ensuring that fewer property deals collapse from delays – saving homebuyers and vendors money in the process.
Fiaz Khalid from LPL said: “The mortgage market has been a little slow to keep up with technology in many ways, though this is slowly changing. For example, the last year has seen the emergence of digital mortgage brokers, while firms like us at LPL have found plenty of ways where improved use of technology can speed up the process and deliver a more satisfying – and less stressful – experience for homebuyers.
“There are limitations to how much technology can do though. That’s why picking experienced conveyancers, who really understand the process, is so important.”
