A major milestone in the digitisation of the UK property market has been reached with the country’s first fully digital home purchase, completed by PEXA in partnership with Hinckley & Rugby Building Society and national conveyancing firm Muve.
The transaction, which forms part of testing ahead of PEXA’s full Sale & Purchase launch later this year, is the latest step in the company’s mission to modernise the home moving process. It follows the success of PEXA’s remortgage proposition, which by January had already surpassed £100m in transactions.
In this latest test case, Hinckley & Rugby Building Society became the first UK lender to complete a mortgage using PEXA’s platform. Muve acted as the conveyancer for both the lender and the purchaser within the PEXA digital workspace.
The deal made use of PEXA Pay, the company’s own payment scheme and the seventh net settlement scheme authorised to clear through the Bank of England. The technology enabled funds to be transferred from the lender directly to the seller’s verified conveyancer account, with title registration at HM Land Registry completed securely and without delay.
No additional funds were required from the purchaser in this test case. However, PEXA recently secured FCA authorisation as a payment institution, meaning it can now receive funds directly from consumers and operate as a third party managed account (TPMA) provider to conveyancers.
Joe Pepper, UK chief executive of PEXA, described the completion as “a landmark achievement” that demonstrates how technology can help simplify and expedite what is often a complex and time-consuming process. “This milestone is a testament to the collaborative spirit of the UK property market,” he said, citing the support of Hinckley & Rugby and Muve, who were also among the first to trial PEXA’s remortgage service.
“This is just the beginning,” he added, noting that further investment in the UK market would follow to deliver a better experience for consumers, lenders and conveyancers alike.
Laura Sneddon, head of sales and distribution at Hinckley & Rugby Building Society, said the lender was proud to have played a part in what she called “a significant step forward” in streamlining mortgage completions. “We are always eager to embrace innovation and work with partners who share our vision for a more efficient and modernised property market,” she said.
David Jabbari, founder and chief executive of Muve, said the transaction underlined the power of digital tools to improve legal processes. “Muve is committed to driving innovation in the legal sector,” he said. “This collaboration aligns perfectly with our mission to deliver cutting-edge solutions for our clients.”
PEXA’s Sale & Purchase proposition is expected to be made available to the wider market later this year.
