First Lender to Enable Electronic Mortgage Signatures Without a Witness Nationwide

Nationwide Building Society Introduces Electronic Mortgage Deeds

Nationwide Building Society has taken a significant step in the mortgage industry by becoming the first lender to allow mortgage deeds to be signed electronically without the need for a witness. This development marks a major shift in how property transactions are handled, offering a more efficient and secure process for buyers and remortgagers.

A mortgage deed is a legal document that ties a person's mortgage to their property. Traditionally, this document required a wet-ink signature and a witness to confirm the authenticity of the signatures. However, with the new system, anyone purchasing or remortgaging a property with Nationwide can sign their mortgage deed online, provided their solicitor or conveyancer is set up to use Qualified Electronic Signatures (QES).

This change eliminates the need for physical exchanges of paper documents, which can be time-consuming and prone to delays. It also removes the requirement for a witness, streamlining the entire process.

Benefits of Electronic Signatures

According to Nationwide, this innovation will speed up transactions, reduce administrative back-and-forth, and enhance security. The technology used for QES is a secure form of electronic signature that has been identity-verified. This type of signature is now accepted by HM Land Registry as part of the mortgage application process, following its decision in August last year.

The use of QES offers several advantages for mortgage borrowers. It ensures that the person signing the deed is properly identified, provides better protection against tampering, and holds the same legal weight as a handwritten, witnessed signature. Additionally, it allows for quicker contract exchanges, making the homebuying process more efficient.

Collaboration with Industry Partners

To implement this new process, Nationwide has partnered with legal firm Your Conveyancer and property fraud protection company Veyco. These collaborations have been essential in rolling out the electronic signature system across the mortgage industry.

Henry Jordan, group director of mortgages at Nationwide, emphasized the society’s commitment to improving the homebuying experience. He stated that technology and collaboration are key to driving convenience and reducing the stress associated with buying a home.

“This is a brilliant move forward and very much in line with the digital world we now live in,” said Jordan. “For too long, simple administrative stages like wet signatures and witnessing have caused avoidable delays, often holding up completions for days or even weeks.”

Industry Reactions

Many mortgage brokers have welcomed this development, believing that other lenders will soon follow Nationwide’s lead. Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, highlighted the removal of friction that has slowed property transactions for years.

He believes this change will cut delays, reduce stress, and improve consumer security. “In many ways, it's an improvement on traditional paper-based systems,” he added. “I would fully expect other lenders to follow Nationwide's lead over time.”

Justin Moy, managing director at Chelmsford-based EHF Mortgages, described the move as a long-overdue upgrade. He pointed out that fewer postal delays for remortgages could save real time and money. “This is a significant step in conveyancing, finally embracing the opportunities of digital signatures,” he said.

However, not all industry professionals are convinced. Chris Barry, director at Thomas Legal, a nationwide conveyancing firm, expressed concerns about the readiness of the market. He warned that most of the sector is still heavily reliant on paper-based processes.

Barry noted that while e-signatures are the direction of travel, the majority of conveyancers lack the necessary tools, budget, or capacity to adopt this quickly. “This sadly is still a long way off,” he said. “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.”

Despite these challenges, the introduction of electronic mortgage deeds by Nationwide represents a significant milestone in the evolution of property transactions. As the industry continues to adapt to digital solutions, the future of homebuying looks increasingly efficient and secure.