Digital mortgages ‘should reduce risk of fraud’, claims business secretary

Written by Sam Trendall on 22 January 2018 in News
News

Digital signature process will use GOV.UK Verify and HM Land Registry’s own digital tools

Credit: Edward Smith/EMPICS Entertainment

The government’s soon-to-launch digital mortgage could help reduce fraud, business secretary Greg Clark has claimed.

Clark last week presented to parliament a written ministerial statement detailing the potential financial liability for the government that could stem from the launch of the new service. Presenting such a statement, in this case on behalf of HM Land Registry (HMLR), is customary in cases where “a government department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority”, Clark said.


Related content


The launch of an online mortgage service presents a new form of liability because the process of certifying borrowers’ identity digitally is not covered by mortgage fraud compensation schemes currently on HMLR’s statute books. But the business secretary said that, not only is the risk of additional liabilities resulting from the launch of the service “considered low”, but that digital mortgages ought to actually be less susceptible to fraud than their physical counterparts. 

“The new process, where the borrower’s identity has to be verified through GOV.UK Verify combined with HMLR’s independent security processes, should in fact reduce the overall risk of fraud,” he said. “To date, GOV.UK Verify has not identified a single example of fraud despite in excess of 1.25 million citizens’ accounts having been created using the GOV.UK Verify service.”

If no objections are raised by MPs in the next few weeks, then Clark will authorise the department to take the new liability on. The digital mortgage service is scheduled to launch at some point in 2018.

Clark concluded: “The government will be taking further steps to improve the home buying and selling process, following the publication last year of a call for evidence.”

 

About the author

Sam Trendall is editor of PublicTechnology

Share this page

Tags

Categories

CONTRIBUTIONS FROM READERS

Please login to post a comment or register for a free account.

Related Articles

Failure to manage IT project cost Scottish pension agency millions
25 June 2019

Scottish Public Pensions Agency did not properly scrutinise Capita’s ‘abnormally low’ bid and failed to manage project says auditor

Northern Ireland prepares for three major IT projects
24 June 2019

Departments of finance and infrastructure publish information on land registration, finance and planning systems

Related Sponsored Articles

Collaboration is key to protecting digital society
9 July 2019

The managing director of BT Security explains how partnerships are essential for a safer connected world

WATCH: The importance of managed services to intelligent connectivity
2 July 2019

If day-to-day IT operations are taking resources away from your organisation's strategic priorities, BT has some helpful advice

Lessons learned from business cases for SD-WAN
25 June 2019

BT has huge experience working with global multinationals on their business case for SD-WAN, and here they lay out a detailed understanding of the real benefits and challenges 

Unlocking the secret to people behaviour change
18 June 2019

This article from BT outlines how focusing on user experience can drive productivity, better engagement and attract the best talent