A change in technology is coming to the UK Mortgage

For a very long time, the mortgage industry in the United Kingdom (UK) has pretty much remained the same. Banks and financial institutions are often burdened with the enormous number of loan applications that come in regularly.

With the loan origination process being the same and the demand for loans rapidly increasing, lenders in the UK are embracing digital transformation.  

Due to many hurdles, customer relationship management and customer satisfaction are also taking an unprecedented number of blows! Therefore, there is an urgent need for a technological transformation that allows for a smooth digital transformation while being innovative enough to solve all the modern-day loan origination problems in a snap.

Fortunately, with the rise of Artificial Intelligence (AI) technology and Machine Learning (ML) algorithms, all that is set to change. The mortgage industry in the UK is up for the long-awaited disruption, and Digilytics is up for grabs when it comes to innovation.

This article further explains the problems faced by the current mortgage industry and how artificial intelligence can bring value to the lenders’ tables.

Highlighting the Lender Challenges in the Mortgage Industry

With a growing demand for mortgages and the lack of innovative disrupters of the process in the market, the profits for the lenders decline.

Repercussions of these challenges also include a significant plunge in mortgage commitments. According to the Bank of England, the dip was greater than 50% in 2020 when compared with 2019!

Some of the challenges that can be highlighted in the current scenario are:

1. High Loan Origination Cost   

For any mortgage lender, loan origination is a crucial first step. With rapid globalisation, market fluctuations, and policy changes, banks are having a hard time dealing with the fluidity of the environment they are operating in

Therefore, the lack of digital transformation of the LOS increases manual processes that in turn drive up the costs. Currently, the average mortgage origination cost is a staggering 4,000 pounds per loan!

2. Lack of Transparency   

As the cost of loan origination process shoots up, it becomes more and more difficult for lenders to be transparent in their processes. On the other hand, borrowers demand the highest degree of transparency. Therefore, balancing transparency and customer satisfaction becomes a strenuous task for banks and other financial institutions.

3. Inefficiency in Loan Approval Processes   

The increased bifurcations in the loan origination process combined with the increased volume of loan applications result in an overall inefficient process that costs a lot of time and money for the lenders.

4. Lack of Coordination Among Stakeholders   

Industry regulations are becoming stricter than ever to ensure the security of assets and also discourage instances of fraud and theft, thereby making the compliance process more and more complex and increasing the paperwork of underwriting.

Amidst all the chaos, the coordination among stakeholders gets disturbed and adds to delays. Such delays can easily extend the process by over two weeks!

old way

The UK’s Mortgage Guarantee Scheme

The COVID-19 pandemic contributed to a substantial dip in the UK public’s confidence towards housing. The dip was most significant in the first quarter of 2020 as per IMLA.

Therefore, the government of the United Kingdom announced a new scheme on the 3rd of March, 2021, that aims to boost the housing market by aiding the public in owning a home.

To buy a property, individuals need to deposit an amount beforehand. The downfall of the economy in 2020 led to a greater number of people struggling for income. Unlike several of the previous Mortgage Lending UK schemes, the Mortgage Guarantee Scheme of 2021 is also applicable to existing homes in addition to new-build homes.

The new scheme's guidelines brought down the deposit amount for people looking to buy new homes to as low as 5%. That means the borrower can take a loan worth up to 95% of the property’s value, as long as the value does not exceed 600,000 pounds!

Innovating UK Mortgage Application and Approval Using AI

The current mortgage approval and delivery process can be broadly divided into five stages:

  • 1. Applying for the loan
  • 2. Processing the loan  
  • 3. The underwriting processes
  • 4. Closing the deal
  • 5. Delivering all relevant documents

The first three are very critical as there is a lot of room for error and, therefore, plenty of potential for unprecedented delays. Furthermore, having a paper-based workflow for reviewing all of the concerned forms and documents is rather tedious. To top that, a manual-based system increases the chances of human error and more delays.

So, how can we work around this?

Using AI-driven and ML-based technology in the lending process, financial institutions could eliminate the complexity of the processes, lower the dependence on manual labor for paperwork, and minimize room for error.

Digilytics RevEl condenses the clunky loan application and funding process into 4 simple and all-digital processes after which you receive your funds. The steps are:

  • 1. Digital submission of documents
  • 2. Automated data capture, review, and validation  
  • 3. Decisioning
  • 4. Offer processing

Moreover, RevEl also empowers the lender with real-time case tracking with critical alerts and notifications

RevEl is innovating mortgage lending in the UK by;

  • reducing the underwriting time by almost half,
  • lowering the time to fund by 3 times,  
  • and increasing the number of loans disbursed by 25%!

Digilytics RevEl's OBVIAX framework is the secret sauce behind innovating and speeding up the UK mortgage process.

One-Shot Learning Technology

RevEl's ML algorithms and one-shot learning technology empower the AI to process more than 100 types of mortgage documents and facilitate UK-wide coverage.


Digilytics RevEl is as minimally invasive. Such modularity allows RevEl to be quickly and easily be bolted on to an existing loan origination system for easy implementation.


Digilytics RevEl proprietary AI and ML technology validate the loan applications, thanks to its advanced configurable engine for completeness, correctness and consistency.


RevEl also integrates the online and offline mortgage origination journey to lower time to fund and origination costs while streamlining the entire mortgage process.


With real-time tracking and predictive alerts, Digilytics RevEl offers unmatched fluidity and security from breaches.


Transparency is critical for the lender as well as the borrower. It improves trust and strengthens customer relationships. With AI-generated reports by RevEl, evaluating model performance becomes a breeze!

How Does Digilytics RevEl Work?

RevEl was built from the ground up using the proprietary Artificial Intelligence (AI) capabilities of the Digilytics platforms to:

  • 1. Lower the cost of originations
  • 2. Reduce the time to fund
  • 3. Enhance the borrowing experience

The easy bolt-on feature of RevEl allows it to dovetail with the Loan Origination System (LOS) of any financial institution without hassle.

RevEl works by:

  • 1. Leveraging AI and ML to validate applications
  • 2. Algorithmically assigning underwriters
  • 3. Enabling real-time tracking and alerting

The RevEl Advantage

As the world continues to battle climate change, ESG (Environmental, Social and Governance) investments are growing.

UK Prime Minister Boris Johnson announced the launch of his 10-point plan for the UK’s Green Industrial Revolution. Under innovation and finance, he emphasised on developing the cutting-edge technologies needed to reach these new energy ambitions and make the City of London the global centre of green finance.

With Digilytics RevEl, green finance comes to the mortgage industry by:

  • Become truly paperless and leverage online data
  • Automating processes  
  • Leverage recovery from Covid-19 
  • Support Green 2030 

In addition to the Digilytics OBVIAX advantage, RevEl brings you:

  • One-touch underwriting; one-day manufacturing
  • Intelligent Affordability Service (IAS) significantly enhances
  • Income and Expenditure (I&E) analysis
  • First Time Right Application  
  • Intelligent Virtual Assistant Glass-pipe tracking
  • Intelligent Allocations  
  • First Time Right Agreements

What does this mean for your mortgage lending services?

  • 15% higher gross lending
  • 40% higher productivity
  • 30% lower OPS cost

Any financial establishment that has Digilytics RevEl plugged into its LOS gains a competitive advantage unlike any other!

Additionally, institutions also become one step closer towards a more sustainable and greener business model.


Digilytics RevEl’s state-of-the-art AI technology is capable of reducing the manual processing time by as high as 60%.

Allowing real-time health check of the submitted data, online/offline modes of document upload and lower human-led admin assistance implies better customer experience, increased reliability of the lender and greater productivity with the same workforce strength.

Furthermore, the Machine Learning (ML) algorithms adapt to different use cases over time and improve the capabilities of RevEl, making it a future-proof and ever-ready product to use in the mortgage industry!

In a nutshell, getting mortgages approved has never been more convenient, fast and hassle-free! It is the mortgage lending solution that everyone has been waiting for.

To get started with Digilytics RevEl, visit the website now!

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