After all, we are living in an age where a straightforward house purchase is seemingly becoming an increasingly rare experience. Interest rates continue to fluctuate wildly, the existence of a solid, tine-efficient property chain is now a luxury, and high buyer demand in some areas of the country are leading to properties being snapped up as soon as they hit the open market.

Research from 2022 suggests that some 31% of properties received an offer within an hour of viewing. Against this backdrop, it can be argued that speed is vital to securing your new home.

However, remember the adage? Act in haste; repent in leisure.

None of us want to be reliving house purchase mistakes which were made simply because a quick decision was needed at the time to secure the property, without taking the time and trouble to double-check the finer points of the agreement. Such a mistake could have repercussions for a lifetime.

As a result, technology is being increasingly used across the mortgage sector for the speed and convenience it offers house buyers, while ensuring they are fully aware of what it is they are signing up for. Crucially, it also provides proof to lenders and brokers that they have explained all details to their customers in a clear, concise manner.

Let us examine the ways that technology is increasingly driving all aspects of the house purchasing process.

The move to digital mortgages.

Until relatively recently, the mortgage sector tended to be characterised by paper-based, manual processes.

Often based around multiple face-to-face meetings, homeowners would need to schedule meetings with their providers to review and sign the forms needed for the property purchase. Not only were such practices time-consuming for all involved, but they were also far from ideal from an ESG perspective thanks to the high carbon footprint resulting from travelling to these meetings, and the resources being used to print off endless documents and forms.

However, the advent of the Covid pandemic accelerated a change to digital functionality. This resulted in the power of online, AI and machine learning becoming common tools used to automate large portions of the mortgage process.

Indeed, the power of technology has now shifted entire swathes of the mortgage process – and increasingly the entire journey – to an online format. Systems that drive simpler user journeys such as instant document verification and affordability models built on data, mean that transactions are not only becoming faster, but they are also becoming far more efficient.

Technology: A revolution to all.

Everyone involved in the house buying process, from advisers to lenders and from buyers to conveyancers and underwriters can now work much more closely and efficiently together, thanks to technological advances.

It is now possible to log on, view, sign, and witness documents in real time without the worry of them getting lost in the post or having to arrange for multiple people to attend a meeting at the same time. And a full audit can be kept which is a game-changer for lenders and brokers when it comes to proving that various regulatory hurdles have been adhered to.

For homeowners themselves, digital functionality is proving to be revolutionary. For example, by removing lengthy and stressful processes, it is now much more straightforward to switch providers in the hunt for a better deal once a fixed term mortgage ends.

Software is now readily available for mortgage providers to enable their customers to easily manage mortgage product switches, allowing them to review, compare, and renew without the need for time-consuming paperwork, branch visits, or phone calls. It can be dovetailed to a lender’s website, with secure sign-in functionality using unique customer data and a one-time passcode. This enables the provision of personalised illustrations, real-time process monitoring and the provision of SMS and email updates.

This digital approach to mortgages is fast becoming the norm. Indeed, it mirrors the overall financial services sector, with smartphone apps driving banking and savings accounts, insurance comparison sites providing all forms of personal insurance quotes and 24/7 access to managing pensions accounts now expected.

The common result of these advances? Speed and convenience for the consumer – but an essential audit trail and proof that customers have been treated fairly.

Mortgages, technology, and regulation

However, speed is not the be-all and end-all, especially for the lenders and brokers themselves.

Never has there been such a focus on ensuring customers are looked after in a fair, proper way. This applies to both the guidance they receive, and the products they are given.

Indeed, as the demand grows to speed up transactions, regulators are introducing new measures to combat fraud and protect personal data, resulting in a drive towards the use of technology to streamline processes and reduce risk. In addition to regulatory guidelines, including Treating Customers Fairly (TCF) and the FCA’s guidance on how to treat vulnerable customers, we are seeing technology being actively harnessed as a regulation tool to benefit lenders, brokers, and applicants alike.

For example, a sophisticated, interactive customer interface can provide useful tools such as pop-up chat bots or pre-populated data fields to ensure customers are getting quick decisions on the right products that will prevent vulnerability, because of the data population being more accurate and thorough.

Furthermore, AI technologies could be used throughout customer modelling and affordability assessments to identify patterns and changes in financial behaviour that suggest a person may be experiencing, or at risk of, financial difficulties.

Technology has, without a shred of doubt, allowed the entire mortgage process, from application to receiving your keys, to be sped up. The shackles of cumbersome paper methods are being shaken off and, in line with other sections of the financial services landscape, are being replaced lock, stock and barrel by digital functionality.

However, in line with speed and convenience, technology is providing a vital way of ensuring official regulations are being met and provides an important way of proving that all actions have been carried out.

While speed is important, it should not be seen as the most important factor in buying a property. For many people, it will be the most important purchase they ever make – and it is a decision that should not be driven by speed alone.

Rami Cassis is chief executive of  ieDigital, Connect FSS and ABAKA.