Home loans now available via smartphone

October 26, 2016 by Brendan O'Neill

Lenders

Customers of Santander can now apply for a mortgage using their smartphone, with a decision provided within 30 minutes.

As more lenders are investing in digital technology to improve their services, Santander first trialled the process in August for customers who wished to re-mortgage. The bank had stated that it would be offering the digital process to home movers and first time buyers by the end of the year.

During the pilot, data indicated that it would take one hour for a digital application to be processed. Once the preliminary mortgage offer has been given by the lender, customers are expected to provide documentation, scanning and emailing them, to remain compliant with current regulations.

However, for many customers, the process actually took between 30 and 40 minutes. Once the preliminary offer has been given by the lender, they will then undertake further checks which will take around eight days before they can confirm the offer.

According to Santander, the industry standard was between 12 and 14 days. The bank predicts that this could be reduced to as little as four days in the future, with the use of automated processes.

More lenders are trialling digital methods for automated mortgage applications, including remote advisers being able to offer advice via a live video link. However, for people who aren’t comfortable using digital media, or don’t have access to a computer or smartphone, mortgage advisers who have a CeMAP qualification and can talk you through the mortgage process, are still accessible.