You’ve probably seen some of the hype around the rise of what’s called ‘Cryptocurrency’. Specifically, relating to Bitcoin and other similar electronic currencies. Currently they are not regulated and their price can fluctuate immensely day by day. However, there have been a number of success stories and thus providing funds which could possibly be used as a deposit for a property. Normally, lenders will want to see a build up of savings, or proof of where the funds have come from, inheritance etc. With no formal category for this type of return, and no formal guidance from the regulators, some lenders may class it as gambling and not allow it as a form of deposit. Despite some lenders confirming they will assist, some of the major high street names have already confirmed they will not accept deposits derived from cryptocurrency. With technology thriving as it is and some cryptocurrencies now worth hundreds of billions dollars worldwide, this could be deemed quite an ignorant view. I suspect, as they become more widely known and used, only time will move this forward.
With this in mind, Technology plays a major part in our financial world. Some lenders already do a lot of their functionality via a mobile app, including voice and face recognition. Impressive hi-tech stuff indeed.
Most people will start their home buying process via the Rightmoves and Zooplas of the world, but some commentators are also predicting that the whole home buying process will soon become a digital revolution. With more effective use of technology cutting down the mortgage process, some entities launching ‘robo advice’, and many lenders now processing everything online, I can see how that can happen.
However, at the same time, I can also see many customers just wanting to speak to someone face to face. Especially those who have not grown up with technology! Plus, as mortgage volumes are increasing, we will see more and more customers fall out of the 'technology only' bracket. So, explore all options and if the technology becomes too confusing, pick up the phone!