Financial Technology (FinTech) is a fast-growing industry, and part of the movement set to dramatically improve our lives. It is already making managing funds, transferring money, and now even arranging mortgages easier, more transparent and economical. Whether traditional mortgage brokers are ready for it or not, the future of the mortgage industry is digital. The smartphone or tablet you’re probably reading this on means that you’re no stranger to digital disruption. Apps and on-demand services have certainly changed our lives for the better, improving efficiencies, costs and customer experience in industries as diverse as manufacturing to taxies and travel - and it’s not slowing down. Digital innovation is also beginning to affect the mortgage industry in the U.K. This might be music to your ears if you’re thinking of selling your house or remortgaging your property. Current homeowners will know what a hassle arranging a home loan through a mortgage broker can be. Typically, you queue up at the bank for an hour, or wait for an interminable amount of time on the phone, to speak to a mortgage broker. Often, you come away more confused than when you started - and then, of course, come more appointments, forms, waiting and approvals. Not only is traditional mortgage broking impersonal and inflexible, it is also slow. Legacy systems employed by banks and brokers mean that the lending process is still heavily reliant on paper - and can take anything from a month up to six weeks for your loan to be approved as a result, according to a report by Accenture. It can also be expensive; the average cost of a mortgage broker in the U.K. is £500, but this varies a lot depending on the size of the mortgage and whether you’re paying a fixed fee, by the hour, a commission, or percentage of the mortgage itself. Digital mortgage apps and broking services are changing this for the better. It doesn’t matter if you’re a Millennial, a Generation Xer, or a Baby Boomer, you will no doubt appreciate speed, transparency, and personalisation. As a case in point, in the U.S. in 2015, 23 percent of those who bought a mortgage did so via online channels, according to a survey by Accenture. At the same time, the number of borrowers who physically went to a branch to purchase a mortgage decreased by a quarter, showing that the trend is certainly moving towards online mortgage services. Whether you’re buying a property for the first time or finding somewhere new, moving house is a special moment. The technology is now here to make it a much smoother process; imagine a much broader range of mortgage deals open to you - that’s 100s of options clearly explained and matched and recommended for your requirements, in a matter of minutes, not weeks. It’s quite a contrast to the slow, manual, and far more limited work being done by traditional brokers today. Also imagine being able to apply for your mortgage online, through your laptop, smartphone or tablet, without reams of paper forms to fill in. There’s no question, when you are making what is probably one of the biggest investments in your life, you deserve good, stress-free service. You deserve to be well-informed and treated fairly. And most importantly, you do not deserved to be charged over the odds for a mortgage that you will be paying off for decades to come. Without a doubt, the future of mortgages will follow in the footsteps of the many other industries that are transforming everyday thanks to the great leaps we are seeing in technology and digital services. Track your mortgage online with MORTGAGEWATCHER.COM
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