Spend a little time speaking with anyone working in the mortgage and housing market during the peak of the pandemic and they’ll tell you that there were many challenges.
When the operational challenge of moving staff to remote-only working hit at the same time as spiking home purchase demand, the two combined to put significant strain on the market.
There were delays throughout the purchase and remortgage journey, and that was reflected by lenders’ decisions to significantly curtail their product ranges, and many parties working around the clock to progress cases before the Stamp Duty holiday deadline.
In many ways this period highlighted the challenges of the market we have today. A fragmented adoption of technological systems meant that the market suffered substantial disruption, and no amount of staff-power could make up the difference.
This was true across the board, but particularly in the conveyancing sector where a 150-year-old system showed signs of significant strain.
What was clear is that a more seamless and automated approach would have improved the experience felt by industry and customers.
Innovating for good
Here at PEXA, we are working to change things for the better. When we first launched in Australia, we faced a similar challenge; taking a largely outdated conveyancing ecosystem and helping industry transform it into something altogether more fit for purpose.
By working with Government, authorities, regulators and, crucially, industry; we enabled the world’s first fully digitised property completion process. To date, we have facilitated over 11 million property transactions, worth circa AU$2trn.
Last month we confirmed our plans for the UK market. With a view to invest around AUD $100 million in the UK into a remortgage platform alone, we have set our sights on taking our learnings from Down Under, and building a bespoke offering to the market here, for the betterment of the UK industry, and importantly, UK customers.
We’ll first target the remortgage market – in England and Wales – to help support the many households facing rising costs to lock in a competitive rate, quickly and easily.
We already have several mortgage lenders and conveyancing firms undergoing product testing, and the Bank of England is working with us to develop fit-for-purpose systems aimed at further transforming the property completion process.
Of course, we’re also working closely with industry to ensure that our work helps to improve the lives of the many conveyancers – big and small – that operate in the UK.
Our success rests heavily on their adoption, so we’re doing everything possible to make the transition to a better market one that’s smooth and gradual.
A healthier market
The mortgage and housing market is a key driver of economic activity in the UK, and we saw its power when it helped kickstart the UK as it emerged from the peak of pandemic disruption. Now, to ensure it’s firing on all cylinders, we must innovate and embrace technology.
Doing so will create a healthier and more resilient market; one that offers a better customer experience and which boosts the operational capacity of conveyancers, lenders, advisers – among others.
For advisers specifically, positive change to the remortgage journey will result in a range of benefits, including improvements to overall customer satisfaction where delays and the need to chase several parties are minimised.
Happier customers also paves the way for more repeat business, which is great because brokers can show the value of their advice over the long-term. Advisers could also expect more business overall, with customers more readily engaging in remortgaging activities.
Change is coming, and the sheer scale and speed of development is astounding. PEXA’s platform is set to improve remortgaging for all involved in the process. I look forward to seeing the benefits and ultimately the transformation of the industry.
James Bawa is the chief executive officer, UK at PEXA
