Another disruptor has entered the mortgage space with a peer-to-peer lending platform which connects buyers with investors who want to fund their loan.
A Bermuda-based firm has launched the alternative mortgage lending platform which it claims is pioneering a new way to finance real estate.
Viva Network says its platform is the world’s first private mortgage exchange that is “setting a new standard in home lending that traditional financial institutions can't match.”
Investors anywhere in the world can use the platform to invest in fractional shares of consumer mortgages with the borrower making repayments through the platform and the investor receiving their proportional share.
The platform leverages a globally connected community using tokenized debt securities using blockchain technology.
While it could be good news for investors, it would not be so for mortgage brokers and banks.
Viva Network says that tokenization improves significantly upon the traditional mortgage model.
“For instance, virtually anyone with a phone will be able to become a mortgage lender, harness the power of compound interest and grow their savings,” the firm’s information release states.
The firm says that it is offering lower rates, greater transparency, and a streamlined process.
However, it is very early days for this kind of alternative, and wary homebuyers may take some persuading that this is the right approach for their mortgage.
For now though, Viva Network CEO Nick Thomson is confident.
"This platform is a proof-of-concept for Viva's ground-breaking mortgage lending technology," he says.