Digital mortgages sound like something from the distant future, yet they are fast becoming a reality. A new “sign your mortgage deed” service allows borrowers to sign their deed online. The hope is that the re-mortgaging process will be sped up and made more efficient.
The first digital mortgage has been signed for a house in Rotherhithe in south-east London. The property has entered the Land Register, which is an indication that the home buying process could be greatly simplified through modern technology and more digital mortgages could follow later.
Digital Mortgages Could Increase Efficiency
Making such a process easier will be positively received by current and potential homeowners. Usually, there is a large amount of paperwork involved, which usually needs to be filled in by hand and signed in front of a witness before being sent by post. This seems rather archaic when a more efficient approach for the home buying process is available. The same approach could be applied to the process of re-mortgaging, as it also involves multiple forms that often repeat information, plus additional documents like leases.
Online Security
One concern with anything digital is the level of security that will be involved. Dealing with any sensitive, personal information online can be troublesome. However, the new digital mortgage service allows borrowers to securely confirm their identity through GOV.UK Verify. This has already been used for government services, including online tax returns and benefits applications.
No Pen or Paper Required
Borrowers can log in and sign their digital mortgages without putting any pen to paper. Borrowers will also no longer require a witness to their signature and there’ll be no risk of documents getting lost in the post.
Coming Soon to All Mortgages
The “sign your mortgage deed” service is currently being tested out for homeowners who are remortgaging. This is in conjunction with HM land Registry, Coventry Building Society, Enact Conveyancing and GOV.UK Verify. Presently, the service is only available for re-mortgages, but has the potential to be extended to other purchases once it is more established.
