In the future data sharing could result in switching mortgages taking seven days or less.
One issue with switching mortgages is that the process can take weeks to complete. Last May, the government said that it would like this to be cut to seven days.
EDM Mortgage Support Services has suggested that data sharing could be the key to achieving this.
EDM provides technology systems to the mortgage and insurance market. In their recent survey they found that 93 per cent of people wanted organisations to share property data. This would decrease processing costs and speed up mortgage switching.
Joe Pepper, EDM’s managing director told the website Mortgage Strategy that:
“Sharing of information is still an aspirational goal but many people in the industry are keen to implement it. Advanced technology will be the catalyst for this to happen as the data is already there.”
He believed that the Financial Conduct Authority would support the sharing of property data between mortgage lenders. This would also help prevent fraudulent applications by criminals that target the mortgage and buy-to-let markets.
Technology developed by EDM and other companies have enabled the process of re-mortgaging to take less time. Both borrowers and mortgages brokers are keen for the administration of mortgage switching to be quicker and this can be achieved through data sharing and advanced technology.
In the future, mortgage-switching and mortgage protection insurance transactions could be fulfilled in seven days or less.