“Our intention is to provide greater certainty for consumers and to reduce costs and administration for transfer agents and lenders.”
Having facilitated over eleven million property transactions worth around AU$2 trillion in Australia, PEXA is currently developing a new platform for the UK property market.
PEXA will initially focus on the remortgage process in England and Wales, and aims to launch its remortgage platform this fall. The platform aims to provide a streamlined process for mortgage lenders, lawyers and transfer agents, reducing the time it takes to remortgage.
The remortgage process typically takes six to eight weeks in the UK, and slowed to up to 12 weeks due to Covid-19 and subsequent temporary stamp duty changes. PEXA aims to significantly shorten this period, making remortgage a simpler and more attractive avenue for borrowers. In Australia, remortgage times have fallen from an average of 42 to 15 days, with some remortgages ending within a day.
As PEXA prepares to launch later this year, a group of mortgage lenders are currently testing products. PEXA is also working with HM Land Registry, as well as government departments, regulators and industry trade bodies as it refines its proposal.
James Bawa, Managing Director of PEXA UK, said: “The UK’s 150-year-old conveyancing system is going digital. We know that by replacing outdated, manual processes with a simple online trading platform, we can make a significant contribution to increasing both market capacity and efficiency, and relieving the stress of consumer life. Our intention is to provide greater certainty for consumers and to reduce costs and administration for transfer agents and lenders.
“PEXA is the only company in the world to successfully and safely digitalize this important part of the housing industry, as demonstrated by its experience and growth in Australia.
“We are extremely excited about the upcoming launch. Digitization is key to creating a more resilient and user-friendly mortgage repayment process. From the feedback we have received from the industry so far, it is clear how transformative our new platform will be for the UK mortgage market, at a time when rising interest rates and compression of consumer finances will lead to an increasing demand for refinancing.
Lord Gerry Grimstone, Minister for Investment at the Department for International Trade and the Department for Business, Energy and Industrial Strategy, said: “PEXA, Australia’s fintech unicorn, has chosen the UK as its first international market, which is a testament to the business-friendly environment we have to offer.
“With the launch of their platform, UK homeowners can expect to save time and money on the remortgage process. We welcome their initial investment in the UK, creating 50 jobs by the end of 2022 , and look forward to supporting PEXA’s continued growth in the UK.