PEXA payment scheme set to "transform" the UK remortgage market

A new payment scheme developed by Australian online property exchange network PEXA to power its new remortgage platform is set to “transform” the remortgage market in the UK.

That is according to Charles McManus, CEO ClearBank, which has partnered with PEXA on its new payment scheme.

McManus said the payment system is “set to transform the remortgaging process for all parties involved”.

PEXA is launching a new remortgage platform in the UK in the autumn.

The Australian fintech claims it will “streamline” the remortgage process for all parties, cutting down on time and costs.

To help speed up the remortgage settlement process, PEXA has created a new payment scheme, called PEXA Pay.

The platform is designed to streamline the process for all parties involved in the remortgaging process, cutting down on time and costs, and improving consumer outcomes, the fintech says.

PEXA operates an online property exchange network which helps lawyers, conveyancers and financial institutions to lodge documents with rental land registers and complete financial settlements electronically.

PEXA is hoping it will replicate its success in Australia, where it facilitated over 11m property transactions, in the UK.

It says that in Australia, more than 80 per cent of all property completions are processed on the PEXA platform.

The Bank of England will be acting as the settlement agent for PEXA Pay. 

PEXA says its new platform and payments scheme has been tested with a cohort of seven mortgage lenders and it has also agreed with the Bank of England to test the payment scheme with another cohort of lenders in October.

Its partnership with ClearBank, the next-generation clearing and embedding banking platform, will help disburse funds to accounts held with lenders not already integrated with PEXA’s own platform.

James Bawa, CEO, PEXA UK said: “PEXA’s investment into creating an entirely new payments scheme highlights the scale of our commitment to transforming the UK’s remortgage process, and I am thankful for the support of the Bank of England as we have built it. 

“It is critical to unlocking the true potential of our technology, delivering a much faster and more efficient way for settlement to take place, benefitting lenders, conveyancers and consumers alike.” McManus said: “Property is a new space for ClearBank to enter, where there is enormous scope to improve legacy infrastructure with innovative financial technology. 

“PEXA Pay is a testament to this and is set to transform the remortgaging process for all parties involved. “This is just the first step in our partnership and we look forward to working together with PEXA to further streamline the critical process of property lodgement and settlement.”