Hinckley & Rugby Building Society says it has become the first UK lender to complete a mortgage using PEXA.

The transaction took place as part of the testing of PEXA’s sale & purchase proposition ahead of its full launch and wider market roll out later this year.

As part of the deal, law firm Muve acted as the conveyancer within the PEXA workspace for both the purchaser and lender.

The transaction used PEXA’s payment scheme to enable the settlement of funds from the incoming lender’s account to the seller’s conveyancers verified account with successful lodgment of title with HM Land Registry to complete the transaction.

The test transaction did not require the purchaser to introduce additional funds.

PEXA UK chief executive officer Joe Pepper says: “Our mission has always been to help transform the property market for the benefit of consumers, lenders and conveyancers. Today’s completion of the UK’s first digital purchase transaction is a landmark achievement in this journey.”

“By leveraging our platform and PEXA Pay scheme, we have demonstrated how technology can simplify and expedite what has traditionally been a complex and time-consuming process.”

Hinckley & Rugby Building Society head of sales and distribution Laura Sneddon adds: “We are always eager to embrace innovation and work with partners who share our vision for a more efficient and modernised property market.”

“PEXA’s fully digital Sale & Purchase platform represents a significant step forward in streamlining the mortgage and completion process, and we are proud to have been the first UK lender to complete a transaction using this ground breaking technology.”

In April, PEXA received approval from the FCA to become an authorised payment institution (API).