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Mortgage applications to be ‘as simple as car insurance’

by LLP Editor
9th Jan 20 2:48 pm

Technology will revolutionise the housing sector over the next ten years, making mortgage applications as simple as buying car insurance for many borrowers, according to a leading expert.

Pete Mugleston, of Online Mortgage Advisor, believes that improvements to finance-based technological processes will enable most borrowers to easily find mortgages to suit their needs.

“This will leave just a small specialist market for direct support,” the Managing Director of the mortgage information hub adds.

The past Decade

This would drastically reverse the trend seen in the mortgage market over the past decade. Up until 2012, most mortgages were taken out directly from a bank or building society. Skip forward to 2014, and more than 60% of loans were arranged through brokers.

Nevertheless, Mugleston claims, “We are on the verge of some real breakthroughs with APIs [application programming interfaces] and automation, and I can see, in another ten years, the mortgage application being as simple as car insurance for many borrowers.”

So, how does Mugleston think the market has changed over the past decade?

He said, “The mortgage market is a completely different place to 2009-10.

“Regulation was still relatively new and the market was still hit hard by the recession, with a strong weight of deals being done directly with lenders and not intermediaries.”

Mugleston continues: “Today, getting an appointment with the bank is tough and brokers are handling the majority of applications. The Mortgage Market Review [MMR] has tightened regulation, and further ensured borrowers are creditworthy and able to afford their loans.

“As a result, many have found it more difficult to be approved. That said, there are many lenders available for those with all sorts of needs and, whilst finding a deal can be tough, there are mortgages there if you know where to look.”


With the UK due to leave the European Union (EU) on 31st January 2020, Mugleston is confident that the UK property market will see much more activity.

“There are already signs of certainty, in terms of new enquiry numbers, of a post-election bounce,” he has seen at Online Mortgage Advisor.

“Longer term, I envisage some reluctance from home movers as the ongoing trade talks with the EU grab headlines, but, to a far lesser extent than the run-up to the recent election, I think trade progress with the rest of the world is likely to be a sideline to most consumers’ personal plans.”

Mugleston believes that the “state of the wider economy and employment” will hit the housing market more substantially: “If either drop significantly as a result what’s going on politically, it can exacerbate any concerns and put plans on hold.”

Although he is not sure that the Conservatives will deliver on the housing policies outlined in their manifesto, Mugleston insists that “a strong economy is the key” to a healthy property sector.

“Whilst I don’t particularly agree with everything the Conservatives do or stand for, they were the best bet in this regard,” he concludes.

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