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We’re at the beginning of the on-demand economy, apps and services like Uber, Airbnb, Netflix, and many others allow us to instantly order products services directly from our smartphones, wherever we are in the world. They save us time, offer convenience, and do away with unnecessary expenses. Up to now financial services have lagged behind, but we’re beginning to see a new world of fintech - and video mortgage applications are another step in the digital direction. In May of this year, in the U.K., there were 65,202 mortgage approvals, according to Trading Economics. Imagine, just for a second, how many of those people had to queue up at the bank, waiting to speak to a mortgage advisor. How many hours and how many litres of petrol would have been saved had those home buyers and mortgage lenders held that meeting via video conference? Also imagine the amount of time-wasting and stress that could have been avoided if those mortgage applications had been done online through secure and verified document uploads. There is power in convenience and efficiency. So there is no doubt that the future of banking, finance, and mortgage lending is digital and that video mortgage applications will become the norm. Big names going digital You may have read that a few large mortgage lenders have already made the digital leap. Santander, for example, recently launched a video mortgage application process. It is providing the service in 63 U.K. branches (but, somewhat oddly, is not yet allowing customers to access it from home). Lloyds and Halifax made a similar move earlier last year, but do give customers access to the service from their sofas. Their video mortgage application service is available on any laptop, tablet or similar device with a screen size over seven inches, once the appointment has been booked through the existing telephone banking line. While none of these systems appear to be perfect, now that some of the largest mortgage providers are starting to offer video mortgage applications, you can be sure that others will follow suit. So what is a video mortgage application? Video mortgage applications offer home buyers (both first-time buyers and current property owners) the convenience and opportunity to get in face-to-face contact with a mortgage lending expert over a secure online video call. Unlike traditional phone calls or trips to the bank, much of the mortgage application process can be completed in real time, as documents can often be uploaded to the lender’s system there and then. What’s the problem with traditional mortgage applications? Unfortunately, traditional mortgage lending is full of inefficiencies for both the buyer and the service provider. One of the main stresses associated with buying a new property is just how long it takes. Buyers can expect to spend hours booking appointments, queuing at the bank (or on the phone), sending documents away, waiting for approvals, form filling, notarising, and so on. And, in the age of the smartphone and big data, it all feels very pre-internet. This is no surprise, though, most mortgage lenders and banks are stuck with seriously out-of-date systems. Filling out the mortgage application form itself with only take two hours or so, but you have to ensure that you have up-to-date information. You can expect to tell a mortgage lender the following information about your finances: - Proof of identity - Current address - Property you plan on buying - Annual expenses: pension contributions, holidays, and other estimated monthly outgoings - Proof of earnings and expected income - Solicitor details - Estate agent details Why are video mortgage applications so important? Video mortgage applications will do away with at least some of the time-wasting and form filling, as the lender/advisor will be able to do much of it during the call. These calls offer buyers the type of on-demand convenience they becoming accustomed to. Let’s face it, talking to an advisor at home is far more preferable than queuing at the bank. The benefit of having a remote team also means that you will be able to connect with a real person far quicker and more easily. Also, rather than having to wait weeks for an appointment to open up, and you’ll be able to use that time to learn more about the process and what will work for your own particular situation. Track your remortgage at Mortgage Watcher
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