Digital approach to mortgage process introduced

It may soon be possible for home buyers to complete the entire mortgage process using an iPhone, as a new partnership has recently been announced.

The money app, Revolut, and Trussle, an online mortgage broker, have announced that they will collaborate so that customers can start their mortgage or re-mortgage application using a mobile app. According to the partnership, this will be a first for the industry. This new product follows the promise by Mortgage Gym, that home buyers would be able to apply online for their mortgage, taking around 15 minutes.

Habito, the mortgage robo-adviser, launched in 2016 and has received funding of £8.2 million from a number of investors. The chief executive of Trussle, Ishaan Malhi, said:

“The digital revolution in the mortgage industry is finally happening. The mortgage industry has been backwards and broken for many years now, it hasn’t changed in many decades.”

He added that a house purchase would probably be the most important and biggest decision people will make financially, which means that they will be less likely to shop around for a service which is cheaper or faster, as they may for other products.

Malhi also addressed the trust issue, and stated that people are more likely to be comfortable with an online process. The chief executive acknowledged that the house buying process was daunting, and that partnerships between start-ups and trusted brands, like Zoopla, will help to build credibility.

Mortgage advisers spend time on CeMAP training courses so that they can guide home buyers through the mortgage application process.

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