The UK government has just announced the launch of a new digital ID scheme. Some mortgage industry experts believe this could speed up the home-buying process.
Individual identification will be stored securely on mobile phones and will become compulsory for all UK citizens and legal residents. This would end the need for relying on paper records.
For those who don’t have mobile phones, the government says it will ensure the scheme remains functional and that inclusion is at its core.
The main aim of the scheme is to help prevent illegal working, but according to some mortgage industry experts, it could also bring benefits for anyone buying a home or applying for a mortgage.
Quicker and simpler ID checks
Currently, providing proof of identity for a mortgage or property purchase can be a hassle. Different lenders request different items – sometimes a photo, sometimes your original passport, and the requirements vary among lenders.
Digital ID should put an end to this duplication. With one secure, verified digital identity, you’d no longer need to supply multiple documents, and ID could be checked in minutes – resulting in mortgage applications being approved faster.
Added protection against fraud
Mortgage experts also believe the new system could reduce the risk of fraud. The Conveyancing Association says it could help stop cases where fraudsters impersonate property sellers.
The Open Property Data Association says it has the potential to reduce fraud across the buying process, provided consumers remain in control of how their data is used.
For buyers and homeowners, this could make the process of applying for a mortgage and buying a home faster, easier and safer.
The government hasn’t confirmed a launch date yet, but we’ll keep you updated as the details become clearer.