Applying for a mortgage can be an annoying and lengthy process which requires face to face meetings in stuffy bank offices. Well that was the case up until the last few years.
Finally the mortgage market seems to be catching up with other consumer facing businesses by investing in Fintech. Some fintech businesses are changing the way that we apply for and secure mortgages completely. Consumers are now used to being able to browse, compare and purchase almost anything at just the touch of a button. With the use of Fintech, it is possible to do just that with your mortgage as well. Many banks already offer an online service allowing current customers to apply for mortgages or receive an offer in principle in order to begin the process of purchasing a house, however an increasing number of competing businesses are providing new and quicker ways to give greater clarity on mortgage availability and increase the speed at which people are accepted.
The latest company to do this is the MoneySupermarket who have just launched their price comparison platform Podium. The site offers an end to end service where customers can compare and then purchase their mortgage though the site. In a recent article by The Financial Times the companies business leaders explain that their new mortgage platform aims to make applying for a mortgage easier and less complicated. Their comparisons and recommendations are not only based on the lowest mortgage repayment option for an individual, but will also compare length of time to secure mortgages with each company, valuation fees and additional fees associated with applying for a mortgage. This could speed up the process of securing a mortgage significantly.
Some people do worry that the use of Fintech within the mortgage industry in such a way is oversimplifying something that should be quite technical and communicated face to face. In fact The Huffington Post state that recent consumer studies show 43% of people who have used a fintech are worried that they could be defrauded. This means that although fintechs are able to offer clarity, speed and ease when applying for financial loans, people do not trust in them as much as they do traditional banks at this moment in time. That being said, a recent study by Yougov found that a third of people would allow an online platform to switch their mortgage for them automatically.
With all this in mind, it is clear to see that Fintech is speeding up and streamlining the mortgage application process and that the more people use these platforms, the more consumers will trust in them. The number of online mortgage platforms is constantly increasing in line with consumers trust in Fintech. Using digital financial platforms for banking and borrowing seem to be the way forward especially as recent figures from the Office of National Statistics show that nearly 6000 bricks and mortar banks have closed within the last 8 years. It seems that online mortgage platforms are more of a necessity as the option to meet with your local bank is no longer available in may peoples cases.