Mortgages: Are they Online-Able?

While the human race is still a long way from the cyberpunk metropolis aesthetics we frequently see in sci-fi films, there’s no denying the fact that technological progress continues unabated.

Unfortunately, it’s often an incremental, even sluggish thing, typified by the frequent release of new mobile phones, game consoles, laptops, and other modern treasures. In other words, technology can seem rather boring at times.

Of course, we’re still living in the shadow of one of the most explosive creations in recent history – the internet – which has had a significant impact on how the world conducts its business. Via this pivotal invention, just about everything once found in a shopping mall has made its way online, including banking, retail, and even taxes – but can mortgages go the same way?

Decision in Principle

There’s already been a push towards making mortgages paperless by existing firms. These financial products endeavor to remove just about everything physical from the application process, including most of the people working with loanees. In theory, this would reduce the cost of labor that comes with employing loan officers and help protect important documents from loss or destruction, as they’re stored on the internet.

Of course, mortgages have enjoyed a digital existence for quite some time, albeit in the form of lenders’ websites and comparison pages. Some companies may also allow customers to begin the application process online, providing at least a decision in principle ahead of the main mortgage application. In contrast, comparison sites simply connect lenders to potential buyers, taking a commission from each referral.

For example, the London-based mortgage broker Trussle is a well-reputed provider of a mortgage in principle. This means that clients can present a query and have their applications’ eligibility checked against 18 different lenders in a matter of mere days. The service is designed to offer buyers an accurate picture of how much they can borrow with only a soft credit check on their file. Trussle claims that, at their quickest, they can offer a deal within just a few hours. The only requisite is an internet connection.

Online Mortgages

What of the future, though? As we’re joining online mortgages roughly around the time of their inception, there are still plenty of questions that need to be asked and things to be proven. The absence of a loan officer may prove particularly jarring for first-time buyers, as it forces them to navigate the process without the professional care they might require. On the flip side, the security of customer details can be  improved with blockchain integration

Yes, the promises made by blockchain enthusiasts have grown a bit tiresome after ten years of mild success, but the technology still has significant potential. The idea of storing important deeds and documents on the blockchain is a sound one, as it effectively eliminates forgery, theft, and consumption by household pets.

Unfortunately, lots of mortgage providers tend to be banks, who have been cagey about using blockchain in the past. Paperless (and humanless) mortgages are a promising area of the industry – if lenders can somehow avoid the inevitable concern that comes with a hands-off approach to financial products.