Mortgage applications will soon be as simple as buying car insurance for many borrowers, as technology begins to revolutionise the housing sector, according to a leading expert.

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

The past decade

Up until 2012, most mortgages were taken out directly from a bank or building society. In 2014, however, more than 60% of loans were arranged through brokers.

Mugleston claims that we are ‘on the verge of some real breakthroughs’ with application programming interfaces (APIs) and automaton.

“I can see, in another 10 years, the mortgage application process being as simple as car insurance for many borrowers,” he says.

When asked how he thinks the market has changed over the past decade, the director says regulation was still relatively new and the market was still hit hard by the recession, with many deals being done directly with lenders and not intermediaries.

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

He says that as a result, many have found it more difficult to be approved. However, there are many lenders available for those with all sorts of needs.

What about Brexit?

With the UK due to leave the EU on 31 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 explains.

“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 side-line to most consumers’ personal plans.”

He believes that the ‘state of the wider economy and employment’ will hit the housing market more substantially, which 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.