Mortgages and fintech – a match made in heaven?
Applying for a Mortgage can be hell! There are few things that are worse than going through the process of meeting with mortgage brokers to trawl through every inch of your financial information, as well as your lifestyle and commitments, not to mention all of the documentation and identification that you have to sift through and file for an application. The process can be lengthy, frustrating and in many cases, cost a lot of money before you are even accepted for a mortgage.
For something that most every people have to do, you would have thought someone would have created a much more efficient and less stressful way of applying for a mortgage a long time ago.
The mortgage market seems to have remained in the dark ages whilst other consumer facing markets have been booming with the help of new technologies. Banks have invested in Fintech in order to make controlling your money possible at the touch of a button through online apps etc, but mortgages seem to have been forgotten about. The Guardian state that new wave of Fintech Mortgage businesses who have launched in the last couple of years, are using cutting-edge technology in order to make finding and applying for a mortgage quicker and slicker. In fact most of these businesses are offering these services for free to their customers. Some would say that with this in mind, mortgages and fintech are a match made in heaven.
There are several key ways that Fintech Mortgage platforms work in order to make the process for consumers through their end to end platforms.
Online mortgage lenders offer an end to end fully automated service which can make decisions on mortgage lending based on your application without the need of information being reviewed by a human. Forbes recently interviewed Francesca Carlesi CEO of mortgage broker service Molo, who explained that their service offer mortgages that are fully underwritten online. Their business is not just an online distribution model but also leverages automated decisions and real time data validation in the back end in order to offer customers quick answers and decisions on mortgage lending. This makes the process much quicker as applications do not have to be checked and underwritten manually by humans.
Another key way in which Fintech companies improve the mortgage process is by automating the document collection process. The Times discuss how Fintech mortgage service Dashly, enable customers to scan and upload their current mortgage documents at the touch of a button. An automated system then works out where the customer lives, their mortgage rates and term before scanning the system for proposed better mortgage options. All of this information is collected by uploading one document, making the document collection process much easier and in secured in one place.
With Fintech businesses such as Dashly and Molo working to make the mortgage process easier for consumers to handle at the touch of a button, it is clear to see how mortgages and fintech are a match made made in heaven.