PEXA will launch in the UK property market in 2022

PEXA, the Australian fintech that enabled the world’s first fully digitized property settlement process, has announced plans to launch in the UK this year, following significant progress in testing its platform with mortgage lenders and the Bank of England.

PEXA was founded in Australia, and following its listing on the Australian Stock Exchange in 2021, the fintech has a market capitalization of A$3.35 billion. Having facilitated over eleven million real estate transactions worth approximately A$2 trillion in Australia, PEXA is now developing a bespoke solution for the UK housing market.

PEXA will initially focus on the remortgage process in England and Wales, and aims to launch its remortgage platform this fall. Designed with global software consultancy ThoughtWorks, the platform will provide a streamlined process for mortgage lenders, attorneys and transfer agents, enabling fast and frictionless remortgage that will significantly reduce the time it takes to remortgage, thereby improving consumer results.

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 changes to Stamp Duty Property Tax. Not only do long delays cause frustration for consumers, but they also come at a cost. Remortgaging can save a homeowner an average of £824 over a five-year fixed rate period, but many applicants drop out of the process due to delays. PEXA aims to significantly shorten this period, making remortgage a simpler and more attractive avenue for consumers to reduce costs. In Australia, remortgage times have fallen from an average of 42 to 15 days, with some remortgages even ending within a day.

As PEXA prepares to launch later this year, a group of mortgage lenders are currently testing products as part of integrating their platform with Bank of England systems. PEXA is also working closely with HM Land Registry, as well as government departments, regulators and industry trade bodies as it refines its proposal.

PEXA is committed to making significant investments in the UK as it helps transform the housing and property disposal market. PEXA intends to grow its workforce to around 50 employees in the UK by the end of 2022.

James Bawa, Managing Director, PEXA UK comments:

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 We know that by replacing outdated, manual processes with a simple online trading platform, we can make a significant contribution to increasing both market capacity and efficiency, and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 evidenced by its experience and growth in Australia.

We are incredibly 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, commented :

PEXA, Australia’s fintech unicorn, has chosen the UK as its first international market, 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..”

British High Commissioner to Australia, Vicki Treadell CMG MVO, added:

I’m excited to see PEXA, the fintech unicorn, expanding into the UK. My team in Australia developed a strong relationship with the PEXA team during their trip to the UK and I myself enjoyed meeting PEXA during a recent visit to Melbourne where we discussed their plans in the UK -United.

My team and I look forward to helping other fantastic Australian businesses grow in the UK in the months to come, especially after the signing of our free trade agreement.”