Digital property exchange platform, PEXA, has announced the completion of the UK's first fully digital purchase transaction.
The transaction took place as part of the testing of PEXA's sale and purchase proposition ahead of its full launch and wider market roll out later this year.
Hinckley & Rugby Building Society was the first UK lender to complete a mortgage using PEXA, with national law firm Muve acting as the conveyancer for both the purchaser and lender.
The transaction leveraged PEXA's proprietary payment scheme, PEXA Pay — the seventh net settlement payment scheme to clear through the Bank of England. The technology enabled the settlement of funds from the incoming lender’s account to the seller's conveyancer's verified account together with successful lodgement of title with HM Land Registry to complete the transaction promptly and securely giving peace of mind that both lender and purchase are protected.
This test transaction did not require the purchaser to introduce additional funds, although following PEXA's recent FCA approval as an authorised payment institution, it can now receive funds directly from the consumer acting as a third party managed account (TPMA) provider to conveyancers for property transactions.
The news builds on the momentum PEXA has generated with its remortgage proposition, which had already processed over £100m in transactions by the end of January this year.
Joe Pepper (pictured), UK CEO of PEXA, said: ”Our mission has always been to help transform the property market for the benefit of consumers, lenders and conveyancers. Today's completion of the UK's first digital purchase transaction is a landmark achievement in this journey. By leveraging our platform and PEXA Pay scheme, we have demonstrated how technology can simplify and expedite what has traditionally been a complex and time-consuming process.
“This milestone is a testament to the collaborative spirit of the UK property market, particularly forward-thinking organisations like Hinckley & Rugby Building Society and Muve who were also the first industry players to test PEXA's remortgage proposition. They have been early believers in the power of PEXA, and their commitment to innovation has been instrumental in making this breakthrough possible.
“The successful trial transaction is a precursor to the launch of our sale and purchase offering later this year. This is just the beginning, and we will continue to invest in the UK market to deliver better outcomes for all stakeholders, making property transactions faster, simpler and more secure.”
Laura Sneddon, head of sales and distribution at Hinckley & Rugby Building Society, added: “We are always eager to embrace innovation and work with partners who share our vision for a more efficient and modernised property market. PEXA’s fully digital sale and purchase platform represents a significant step forward in streamlining the mortgage and completion process, and we are proud to have been the first UK lender to complete a transaction using this ground breaking technology.
"Our team has worked closely with PEXA to test and implement this platform, and today's successful transaction demonstrates the potential for this technology to transform the property market. We look forward to continuing our partnership with PEXA to deliver enhanced services for our customers and to lead the way in digital innovation within the lending industry.”
David Jabbari, founder and CEO of Muve, commented: “This achievement underscores the transformative potential of PEXA’s platform to improve the conveyancing process.
"Muve is committed to driving innovation in the legal sector, and this collaboration aligns perfectly with our mission to deliver cutting-edge solutions for our clients. We are proud to have played a key role in this historic transaction and look forward to working with PEXA to bring the benefits of digital conveyancing to more consumers across the UK.”
