The Better https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpgets Bill was announced towards the end of May 2016, as the government attempts to speed up the switching process for consumers, which will also include mortgages.
A document has been produced by the Department for Business, Innovation and Skills, which focused on whether it was possible for borrowers to remortgage within seven working days. This would entail documents being reviewed, conveyancing and the transfer of funds taking place simultaneously.
Although it would be a welcome move if the mortgage process were to be sped up, it is also necessary to maintain the high standards set by lenders. Although technology could be utilised to create an efficient process, it is crucial that processes are put in place to prevent fraud. Switching providers is a lengthy process, and for switching phone or energy providers, seven days may be sufficient. However, switching a mortgage deal involves numerous checks and paperwork.
Lenders currently take steps to prevent fraudulent activity, checking that land or property is suitable, reviewing a client’s credit record and conducting other checks. Speeding up the process may result in errors being made, which could increase risk of fraudulent behaviour.
However, the Council of Mortgage Lenders has interpreted the document as stating that the transaction will be completed seven days after all necessary checks have been completed, which seems contrary to the promise of speeding up the process.
If it ever becomes possible to switch mortgage providers within seven days, seek advice from a CeMAP-qualified adviser.