Nationwide first lender to permit mortgage deeds to be signed electronically and with out a witness

Nationwide Building Society has become the first lender to allow a mortgage deed to be signed electronically and without the need for a witness.

A mortgage deed is a legal document tying a person’s mortgage to their property. It typically needs to be signed and witnessed by hand with a witness also signing the document. 

Now, anyone buying or remortgaging a property with Nationwide will be able to sign their mortgage deed online, if their solicitor or conveyancer is set up to use Qualified Electronic Signature (QES).

This will avoid the time-consuming exchange of paper documents and the need for a wet-ink signature and witness. 

Nationwide says it will speed up transactions, cut the back-and-forth admin, and make the process more secure. 

The technology uses a secure type of electronic signature that has been identity-verified and can be used thanks to HM Land Registry’s decision in August last year to begin accepting them as part of the mortgage application process.

Mortgage deeds have always had to be physically signed and witnessed in written form

A QES offers better protection for mortgage borrowers, according to Nationwide. It proves who signed the deed, better protects against tampering and has the equivalent legal standing of a handwritten, witnessed signature. 

It also ensures that contract exchanging can happen much quicker.

Nationwide has collaborated with the legal firm Your Conveyancer and property fraud protection firm, Veyco to roll out the new process.

‘Nationwide is committed to speeding up the homebuying process and reducing the stress and inconvenience that can come with buying a home,’ said Henry Jordan, group director of mortgages at Nationwide.

‘Technology and collaboration are key to driving convenience and that is why we’re delighted to have worked with HM Land Registry, Your Conveyancer and Veyco to become the first mortgage lender to allow electronic signatures on mortgage deeds.’

Will this speed up homebuying?

Britain’s biggest building society’s hailed this latest step as something that will speed up the homebuying process. 

Many mortgage brokers agree and think other lenders will soon follow.

Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, said the industry is finally removing friction that has been slowing property transactions for no good reason. 

He thinks this should cut delays, reduce stress and actually strengthen consumer security. He also expects other lenders to follow.

‘This is a brilliant move forward and very much in line with the digital world we now live in. 

‘For too long, simple administrative stages like wet signatures and witnessing have caused avoidable delays, often holding up completions for days or even weeks. 

‘Allowing secure, verified electronic signatures on mortgage deeds has the potential to significantly speed up transactions and reduce stress for buyers and remortgagers alike.’

‘In many ways, it’s an improvement on traditional paper-based systems. I would fully expect other lenders to follow Nationwide’s lead over time.’

Justin Moy, managing director at Chelmsford-based EHF Mortgages said it is a long-overdue upgrade that saves real time and real money. 

He pointed to fewer postal delays for remortgages, and argued that missed or slow delivery can leave borrowers paying unnecessary interest while they wait.

He said: ‘This is a significant step in conveyancing, finally embracing the opportunities of digital signatures, avoiding the need for Royal Mail’s hit-and-miss delivery service, which costs borrowers a fortune in additional interest each year.’

However, not everyone is convinced. Chris Barry, director at Thomas Legal, a nationwide conveyancing firm, had concerns, warning that most of the market is nowhere near ready.

He cautioned the early success relies on tech-enabled firms integrating with other platforms, while thousands of conveyancers still lack the tools, budget or capacity to adopt this quickly. 

He backed e-signatures as the direction of travel but said the sector is still heavily paper-based.

‘This sadly is still a long way off,’ said Barry. ‘The successful trial was a tech-enabled conveyancing firm integrated into another tech firm. 

‘There are 4,500 conveyancing firms, most of which have no technology, and those that do are unlikely to have the budget or resources to integrate systems.

‘Development time is expensive and far from straightforward. Whilst e-signatures are absolutely the way forward, conveyancing is still stuck behind paper, post and dictation.’