Mortgages are commonly known as one of life’s most stressful and time consuming processes. Not only do they require hours upon hours of comparisons, borrowers must then go through calculations and checks to find the best rates, as well as endless reams of paperwork and forms.
When you finally apply for your mortgage, then comes another lengthy wait and yet again, more paperwork. It’s a process that can take weeks and even months to complete and cause immense pressure. But wait, there is hope after all!
Technology has changed almost every aspect of daily life, allowing us to order food and flag a cab through an app. Now, it would appear that thanks to technology, the long and painful mortgage procedure could soon be a thing of the past. No longer will borrowers have to sit through endless appointments, or wait on phone calls to find out how their application is progressing. Instead, the process could be managed easily through your smart phone.
Things are Changing
2016 has undoubtedly been the year of technology, with automated cars hitting the road, the invention of umbrellas that can tell you when it’s going to rain and virtual reality gaming products hitting the shelves. But what has that got to do with the finance industry? Well, the way we pay has been revolutionised, too.
Banks have embraced contactless cards, with the number of contactless transactions across Europe now reaching into the billions and growing every year. In addition, smart phone payment apps have exploded, with hundreds of retailers now accepting these new methods of payment. Then there are short term loans that can be applied for online with an instant decision and quick payment.
However, while technology has dramatically altered the way we shop, socialise and work, it seems that the financial world is still playing catch up.
Smart Phone Mortgages have Arrived
Although a number of banks have embraced mobile banking apps, lending has been slow to join the race. The exciting news is that the finance industry is starting to embrace technology and mortgages will be the next to receive a makeover.
The latest development in the financial world is the first online-only smart phone mortgage application. Launched recently, the application process, communication and progress are all completed through the app, with users able to accept their mortgage application with a simple swipe of their finger.
As the number of mobile phone users continues to grow – 93% of adults in the UK now use a mobile phone – and daily life becomes ever more digital, more lenders could soon follow suit.
While banks are still functioning in traditional ways, online lenders are promising to revolutionise the mortgage industry, both in the UK and overseas. In the future, it seems we could see more financial businesses moving online.
The industry is in the middle of a huge change, with high street banks facing tough opposition as more online competitors emerge. These new services promise faster approvals and a simpler process, which could revolutionise the way we borrow money and buy property in the near future.