Covid-19 emphasises the capabilities of mortgage technology

We are all learning how to go about our new daily lives in the most productive, safe and secure manner possible. When it comes to the mortgage market some obvious obstacles have been placed in our path and many functions which were ‘normal’ practice only a matter of a few weeks ago have temporarily been lost. A major sticking point across the market is physical valuations. This has created many issues, especially when it comes to specialist lending and lending at higher LTV bands, but lenders are taking stock and working hard to find responsible answers and solutions to these types of issues.

We’ve also seen headlines pointing to the housing and mortgage markets coming to a standstill, but this isn’t the case for all transactions and there is still business to be written by lenders in the form of remortgaging and product transfers. Much of this will again be data-driven and supported by technology where possible, for example the greater use of AVMs by lenders for lower LTV applications. And with many product transfers able to be processed without the need for physical valuations, buy-to-let business can still be completed – providing lenders have the systems, processes and staff in place to be able to complete this type of business. The importance attached to electronic verification has also risen to the fore as a result of Covid-19 restrictions and whilst this is a direction already being taken by the industry, these challenging times have further emphasised how outdated some paper-based ID checks are and how collating, storing and sending documentation securely online remains the answer moving forward.

Even during the most testing times there are lessons to be learned. Technology has become the main crutch for all businesses over recent weeks and, whilst we haven’t taken its importance for granted, we are learning just how vital it is in not only keeping the wheels of the housing market moving but how it continues to show the way in terms of how we can move away from some antiquated property/mortgage related journeys now, and in the future.

We will get through this horrendous period. We will also learn about our capabilities along the way and the capabilities of technology in revolutionising the way we do business. Good, professional advice will continue to play a major role in this journey and those who take this opportunity to better embrace technology to improve their service offerings and advice process will be the ones who will better meet the needs of the private rented sector and residential mortgage markets moving forward.