The tech revolution: what lies ahead for buy-to-let lending

The integration of technology within the buy-to-let sector is evolving at an unprecedented pace. We’re already witnessing quicker, more straightforward, and more cost-effective decisions and processes. With the benefits of digitisation reaching lenders, brokers, and landlords alike, advanced technologies like artificial intelligence (AI) and open banking promise a transformative impact on the sector.

Technology enables lenders to deliver a more customer-centric experience, strengthening partnerships with brokers and borrowers. A tech-driven approach allows lenders to respond swiftly to market demands, adapting to find efficiencies and savings for brokers and their clients. At the heart of this is an in-house broker portal, allowing us to be responsive and independent, eliminating the need to wait for system updates dictated by third-party tech providers.

Beyond improving broker engagement, several mortgage processes are overdue for a transformation—particularly those bogged down by paperwork. Conveyancing, for instance, remains heavily reliant on paper and red tape, resulting in notorious delays. Recognising this, we developed an eConveyancing platform this year to expedite the offer-to-completion timeline. The platform has enhanced communication channels, improved transparency for external conveyancers, and enabled quicker notifications of completion when funds are transferred. Looking forward, we aim to introduce a streamlined digital signing process, making “wet” signatures a thing of the past.

We’ve also simplified the application fee process, allowing brokers to pay fees across portfolios with greater transparency on payment statuses. Furthermore, brokers now benefit from an enhanced phone journey with automated case status updates and self-verification options.

Another innovative area is the use of automated valuation models (AVMs) in the buy-to-let space, which boosts efficiency and accelerates offer times. Earlier this year, Landbay became the first mainstream buy-to-let lender to incorporate AVM products, and recently, we launched a new range of two- and five-year 75% LTV AVM products.

Our tech ambitions for the upcoming year are even bolder. We’re working on implementing AI, machine learning, and document-reading tools to help underwriters manage supporting documents more efficiently. We can further streamline case processing times by extracting essential information from documents.

Integrating sourcing systems, broker CRM systems, and our platform will be critical in making the application journey more user-friendly. We also plan to introduce a more intuitive way to run affordability calculations across various mortgage products, enhance background portfolio submissions, and improve communication transparency between brokers and case managers.

The future has arrived with AI, but other technological trends are poised to make a significant impact, and we’re watching them closely. Open banking, for instance, promises to reduce the volume of supporting documents required for evidence, such as mortgage payments and bank statements. It will also simplify processes around payments and back-office transactions, transforming how application fees are handled.

We’re also monitoring developments in open property data, which could dramatically speed up and simplify the mortgage process for landlords. By leveraging diverse property data sources, we can expedite underwriting, identify property issues earlier, and minimise wasted time for brokers, applicants, and underwriters on problematic cases. Open property data can also enhance services by offering applicants deeper insights into their portfolios, enabling opportunities for advice on property improvements.

However, these technologies must be adopted with customer needs at the forefront, used only where they add genuine value. At Landbay, we prioritise thoughtful technology integration, ensuring each advancement serves a clear purpose.

The future of buy-to-let lending will demand that lenders and borrowers stay agile, embracing technological advancements to deliver the best service to our customers.

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