Re-mortgaging your home is about to get a lot quicker!
Australian-founded fintech firm, PEXA, has announced its plans to launch in the UK this year, after testing its platform with mortgage lenders and the Bank of England.
Having facilitated over eleven million property transactions worth circa AU$2 trillion in Australia, PEXA is now developing a new platform for the UK housing market.
PEXA will first focus on the remortgage process in England and Wales, and aims to launch its remortgage platform this Autumn. The platform aims to deliver a streamlined process for mortgage lenders, lawyers and conveyancers, reducing the time it takes to remortgage.
The remortgaging process typically takes six to eight weeks in the UK, and slowed to as long as 12 weeks as a result of Covid-19 and the subsequent temporary changes to stamp duty. PEXA aims to significantly shorten this period, making remortgaging a simpler, more appealing avenue for borrowers. In Australia, remortgaging times have dropped from an average of 42 to 15 days, with some remortgages completing in one day.
As PEXA prepares to launch later this year, a group of mortgage lenders are currently undertaking product testing. PEXA is also working with HM Land Registry, as well as government departments, regulators and industry trade bodies as it refines its proposition.
James Bawa, chief executive of PEXA UK, commented: “The UK’s 150-year-old conveyancing system is on a journey to digitise. We know that by replacing outdated and manual processes with a simple online exchange platform, we can significantly help boost both market capacity and efficiency, and take a lot of stress out of consumers’ lives. Our intention is to provide greater certainty for consumers, and reduce costs and administration for conveyancers and lenders alike.
“PEXA is the only company in the world to successfully and securely transition this important element within the housing sector to digital, as evidenced by its experience and growth in Australia.
“We’re incredibly excited about the forthcoming launch. Digitisation is crucial to creating a more resilient and consumer-friendly remortgage process. From the feedback we have had from industry so far, it’s clear how transformative our new platform will be for the UK’s remortgage market, at a time when rising interest rates and squeezed consumer finances will drive increasing demand to refinance.”
Lord Gerry Grimstone, minister for investment at the Department for International Trade and the Department for Business, Energy & Industrial Strategy, commented: “Australian fintech unicorn PEXA choosing the UK as their first international market is testament to the business-friendly environment we have to offer.
“With the launch of their platform, British homeowners can expect to save time and money on the remortgage process. We welcome their initial investment into the UK creating 50 jobs by the end of 2022 and look forward to supporting PEXA’s continued growth in the UK.”
source: financialreporter.co.uk