Since Natwest moved to a paperless mortgage application model, many other lenders have followed suit, but what does it entail and is it really worth it? In this article, we’re going to explore the process of paperless mortgage applications in more detail and cover some of the benefits for you and your customers in switching to this model.
What is a paperless mortgage application?
With so many facets to consider when buying a house, from proof of income through to dealing with agents and calculating Stamp Duty Land Tax, applying for a mortgage is (traditionally) one of the most document-heavy processes. With so much paperwork, things can quickly get misplaced and it’s not always clear what documents have been sent, or which ones are still outstanding. This only adds to what is often a stressful experience.
Digitising a mortgage application allows applicants to upload and download documents, complete forms instantly, and sign and view all of the relevant information online, with no need for paper copies of sensitive identification flying around. A paperless mortgage application is available to those who already have an Agreement in Principle, and enables applicants to apply online, by phone, or via video call.
It’s more efficient than the traditional method and offers many advantages, as outlined below.
What are the benefits of paperless mortgage applications for borrowers?
Providing an efficient and seamless customer experience is key in the finance industry, and choosing to move to a digital mortgage application process allows you to do just this for your customers. Through a paperless system, your customers can benefit from things such as a faster decision process, a more seamless and consistent service, and the ability to sign and submit forms online whenever is convenient to them.
Receive a decision faster
With everything needed being in one convenient place, there’s less back and forth. This means lenders are able to make a decision more quickly, with many applicants receiving a mortgage offer within 24 hours of making their application.
Better consistency for borrowers
Most of the property buying process is digital. From finding a conveyancer to arranging a house viewing, it’s become second nature to resort to the internet to complete important interactions. You can even cash cheques via banking apps, so applying for a mortgage should be the same. Paperless applications allow fluidity in the customer journey because, like everything else buying related, they can complete their application and track it online with ease.
Less stressful application
Sifting through lots of paperwork, keeping it safe, and returning it to the bank can be stressful, and applying for a mortgage is already stressful enough. By submitting documentation digitally, borrowers can easily apply online, sign what they need to, and not have to worry about losing an important document or physically submitting it on time.
View and sign all documentation online
As mentioned, paperless mortgage applications allow borrows to not just submit documents, but to sign and read them at their leisure. This in itself often speeds up the overall application process, making a digital document exchange favourable in terms of timing.
What are the benefits of paperless mortgage applications for lenders?
On the flip side, there are advantages of going paperless for lenders, too. Some of the key benefits include:
Faster time to offer
It’s far easier for lenders to make a decision when the information they need is standardised and in one case file. There’s no need to trawl through documents to find the information that relates to each borrower, and you can clearly see if something is still pending. Faster underwriting means less pressure on staff and better outcomes for customers.
Meet customer expectations
In a world where everything is digital, buyers are accustomed to having what they need at their fingertips. With a lot of financial transactions being digitally automated, such as receiving bank statements or a new debit card, it stands to reason that buyers generally expect the same from a mortgage application. They also expect all information gathering to be standardised , so by going paperless, you can meet and exceed these expectations.
Increase conversion rates
It may not be obvious, but adopting a digital approach can increase conversion rates on the basis of ease. Borrowers are more likely to go through with an application if it’s easier and more accessible for them to do so.
Reduce lending costs
The more streamlined your process is, the lower your overall costs will be. A digital mortgage application process saves paper, printing and postage costs. This, coupled with the impact on any ESG programmes you have implemented, serves to drastically reduce costs while offsetting your carbon footprint.
Are paperless mortgage applications secure?
Naturally, one of the key questions borrowers have is whether paperless mortgage applications are secure. In short, the answer is yes, and perhaps more so than a paper application. Digital servers are highly advanced and compliant, and cyber security is a top priority in the same way it is for all financial services.
How Vizolution can help with paperless mortgage applications
At Vizolution, we have helped multiple high street mortgage lenders move to a paperless application model. We have the experience and technology needed to efficiently and securely move lenders to a streamlined solution. To find out more about the process, please contact us.