The platform allows parties in a property transaction to exchange digitally, without the use of physical documents. The fintech firm, which has been established in Australia since 2010, claims this will reduce the time, risks and costs associated with the remortgage process.
Hinckley and Rugby will be onboarded first in September. Further lenders are expected to join the platform throughout next year.
Pexa UK is working with the Bank of England’s Real-Time Gross Settlement upgrade, which is the infrastructure that enables lenders and account holders to move money in real time. With this process, Pexa UK can only work with a limited number of lenders at a time.
Speaking with Mortgage Solutions in July, James Bawa, CEO of Pexa UK, explained that the platform pulls data from HM Land Registry (HMLR), so when a lender issues an offer letter and the conveyancer is instructed, the conveyancer can use that data to produce a redemption statement immediately.
Bawa said pulling the data in early would reduce transaction times.
He added: “Whether it’s using APIs directly in or shooting stuff straight to HMLR, rather than sending PDFs off, it’s the automation and the orchestration that reduces it, and expedites it by weeks.”
In Australia, Pexa has facilitated 11 million remortgage and purchase property transactions.
Bawa said the firm wanted to partner with lenders of different sizes to give brokers an option on who to place cases with, and to also demonstrate that the function can work at all levels.
This year the firm launched the Pexa Pay System, a payment transfer scheme which was developed with technology consultancy firm Thoughtworks and has the Bank of England acting as the settlement agent. It partnered with ClearBank to enable the final disbursement of funds through Pexa Pay System to accounts held with lenders not integrated into Pexa UK’s exchange platform.
Bawa said: “Since launching in the UK earlier this year, we have been clear in our aim to help improve the remortgage and property completion process through technology and better industry collaboration. It is so rewarding to see this vision shared by lenders.
“Hinckley and Rugby Building Society has a strong track record of supporting new technology entrants into the UK market and will be our first reference site. They have given early and consistent support, working closely with us to bring Pexa to the market and will be undertaking our first transaction in the UK.”
He added: “Shawbrook, the first bank we have collaborated with in the UK, has shared its deep expertise in specialist mortgage markets including professional buy-to-let. Shawbrook’s approach to leveraging technology for the betterment of its customers is highly aligned with our own.
“The enthusiasm and support received from lenders demonstrates their drive to adopt technology for the benefit of its customers. We are taking a considered approach to entering the UK market as we understand the criticality of the completions process and must ensure we take our time to build and launch the right proposition for the market.”
Board appointments
Pexa UK has also established its board, chaired by Jon Hooper, chairman and non-executive director (NED) of Cumberland Building Society. Glenn King, group managing director of Pexa is also on the board, as is chief financial officer Richard Moore. Helen Silver, director of Pexa group also sits on the board as well as CEO Bawa.
Hooper said: “I’m honoured to accept the role as chair of the Pexa UK board. It is an incredibly exciting time not just for Pexa, but the wider lending and conveyancing market as the UK is well overdue for a digital transformation.
“I welcome the opportunity to work with my fellow board members, the executive teams in both the UK and Australia, government, regulators, industry and the community to deliver fast, safe and more efficient and transparent digital property refinances and completions for UK homeowners, sellers and purchasers.”
