The process saw lender and law firm deal with both the financial settlement and the application for registration with HM Land Registry
Australian fintech firm PEXA has purchased Leeds-based property law outfit Optima Legal from Capita for an undisclosed amount.
With Optima Legal dealing with 22% of the remortgage market, PEXA believes this acquisition will allow it to show off its platform to the market, which enables entirely digital payments and settlements in remortgage transactions.
Yesterday, 7 September, Hinckley & Rugby Building Society was the first lender to use this system to serve a digital remortgage alongside law firm Muve, completing the process ‘in minutes, rather than days,’ according to PEXA.
The process saw lender and law firm deal with both the financial settlement and the application for registration with HM Land Registry.
PEXA says that Shawbrook Bank will be offering this service next.
Additionally, with the Bank of England, it has developed a payment scheme for use in remortgages, named PEXA Pay, which has recently completed its testing phase.
PEXA UK chief executive James Bawa comments: The acquisition of Optima Legal marks a significant step forward for PEXA in the UK and demonstrates the strength of our commitment to delivering transformational change that will benefit consumers, conveyancers and lenders alike.
We look forward to working with the Optima Legal team to integrate our technology, showcasing the benefits of digitisation – from improved accuracy and efficiency to reduced costs. Importantly, our platform will remain available to all, he said.
Working with stakeholders across the industry, and starting with remortgaging, we aim to streamline a conveyancing system that has been under significant pressure, he said.
He said: One in five borrowers has abandoned the remortgage process in the past two years, given delays, complexity or poor experiences. We want to make that is a thing of the past as interest rates rise.
