Paper mortgage process viewed as outdated

According to a study conducted by GBG, specialists in identity data intelligence, UK consumers are facing barriers to getting on to the property ladder due to an outdated and old fashioned mortgage application process.

The Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review, introduced in 2014, set out new, stricter procedures for the mortgage application process, which includes the provision of suitable documents to prove identity, like a utility bill or bank statement. The documents must be originals rather than printed documents in order to satisfy the money laundering requirements. As 69% of individuals in the UK receive bank and credit card statements digitally, according to research by GBG, this is causing a huge problem.

The study discovered that 42% of consumers in the UK don’t hold paper copies of a utility bill, as they view them online, accessing them via email. Without suitable documentation, an application for a mortgage can be delayed, even resulting in the lender refusing the application.

The group managing director at GBG, Nick Brown, stated that it is critical for lenders to check the identity of mortgage applicants to prevent fraud. However, it is also necessary for them to update processes so that they are in line with real life procedures.

More than a third of the respondents stated that the mortgage application process was a stressful experience, while one third admitted that it was complicated. Mortgage advisers take CeMAP training so that they can help to reduce the stress and complexity of the process for a buyer.

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