Lender offers 7-minute decision on mortgage to home buyers

Speed matters when it comes to home buying. Now a new digital mortgage lender is promising an instant decision on a loan.

M:Qube says it will deliver a decision on a loan application in seven minutes.

That’s vastly faster than the 21 days most high-street lenders take to agree a legally binding loan.

‘Equivalent of cash buyers’

Piers Maughan, chief commercial officer for M:Qube, told the Times that home buyers who had secured a loan from his company would be “the equivalent of cash buyers”.

That, he said, puts them in the best possible position with sellers who want to ensure any bidder has the finance to secure a sale.

M:Qube will launch next year and initially only offer loans in the buy-to-let market.

Borrower will access loan via broker

However, the lender intends to broaden its services to include the general property market later in 2020.

Borrowers will have to use a broker to access its range of mortgages, but that will come with the guarantee of a quick decision.

Delays in securing a mortgage are one of the biggest complaints from home buyers.

The process can often be slowed while lenders ask for proof of income and other pertinent information. The rules on affordability introduced after the financial crisis can also delay a decision.