Nationwide has become the first lender to allow a mortgage deed to be signed electronically and without the need for a witness in a “significant step” for the market.
Anyone purchasing a property or looking to remortgage with Nationwide will be able to sign their mortgage deed electronically, if their solicitor is set up to use Qualified Electronic Signature.
The move, made possible through collaboration with HM Land Registry, Your Conveyancer, and Veyco, forms part of the bank’s efforts to digitise and speed up the homebuying process.
Nationwide group director of mortgages, Henry Jordan, said: “Nationwide is committed to speeding up the homebuying process and reducing the stress and inconvenience that can come with buying a home.
“Technology and collaboration are key to driving convenience and that is why we’re delighted to have worked with HM Land Registry, Your Conveyancer and Veyco to become the first mortgage lender to allow electronic signatures on mortgage deeds.”
Nationwide also suggested that a QES offers better protection for consumers as it proves who signed the deed, better protects against tampering and has the equivalent of legal standing of a handwritten, witnessed signature.
It also ensures that contract exchanging can happen much quicker.
John Charcol mortgage technical manager, Nicholas Mendes, added this development would be “a genuinely significant step for the mortgage market”.
He had explained that the mortgage deed has been one of the “last stubbornly” paper-based parts of the process, and so suggested that allowing it to be signed digitally removes friction.
“For borrowers, it should mean fewer delays at a critical point and less reliance on printing, posting, and witnessing documents at short notice. It also adds more certainty at exchange, with fewer moving parts at a point where transactions are most vulnerable to delay,” he continued.
“For lenders and conveyancers, removing the need to physically handle and return deeds should cut out last minute hold ups that often sit outside the buyer’s control.
“Crucially, this is not just about speed. The identity checks and audit trail behind Qualified Electronic Signatures strengthens protection around one of the most important documents in the process.”
Mendes pointed out the key with the bank’s proposition is adoption, explaining that while Nationwide moving first matters, the real benefit will come as more firms follow and this becomes the default, not the exception.
This digital development follows HM Land Registry’s decision in August of last year to begin accepting QESs as part of the mortgage application process.
tom.dunstan@ft.com
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