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

Related Sponsored Articles

The rapid, low-risk cloud transition solution for Oracle customers
1 March 2021

Jointly, Equinix and Cintra enable organisations with mission-critical Oracle workloads to accelerate their journey to cloud, while minimising transition risks - here's how

How digital is helping Defence Medical Services re-imagine HM Armed Forces healthcare
3 February 2021

Defence Medical Services (DMS) is pursuing ground-breaking digital, data and technology transformation which will revolutionise Tri-Service healthcare provision to over 135,000 Armed...

How Your Privacy Program is a Competitive Differentiator
29 January 2021

OneTrust presents the reasons why your organisation should invest in privacy management - and offers three easy tips for getting started 

Email security incidents happen every 12 hours – it’s time to close the gap in Microsoft 365
21 January 2021

The remote-first world has seen email being relied on more than ever as a core communication mechanism - but with 93% of IT leaders acknowledging a risk to sensitive data, what steps should be...