PEXA expands UK footprint with latest acquisition

Australian e-conveyancing platform PEXA will continue its UK expansion with the acquisition of British high-volume remortgage processing firm Optima Legal.

The acquisition represents an opportunity to implement PEXA’s digital platform and its associated benefits into the UK market. Optima Legal has a 22 per cent share of the remortgage market and counts six of the top eight UK lenders as customers.

Capita plc (Capita) currently owns Optima Legal, which is headquartered in Leeds, UK.

In a 8 September ASX update, PEXA said the acquisition supports its growth plans in the UK digital conveyancing market.

The group’s UK roll-out remains on track with its remortgage offering launching successfully on 7 September with the Hinckley & Rugby Building Society and conveyancing firm Muve, the company explained. Shawbrook Bank is also set to go live shortly, PEXA confirmed. 

Thursday’s (8 September) announcement follows the launch of PEXA Pay, the seventh net settlement payment scheme in the UK — developed in collaboration with technology consultancy firm ThoughtWorks — with the Bank of England acting as the settlement agent.

PEXA’s automated solution is also integrated into Her Majesty’s Land Registry.

What’s in it for UK borrowers?

PEXA explained that consumers benefit from increased speed and certainty, greater transparency of the post-offer process, and better loan deals created by ease of switching.

Likewise, lenders stand to benefit from reduced processing costs, decreased time to settlement and increased remortgage capacity, PEXA stated.

As an open-access platform, PEXA can support major lenders through their various panel firms, while also working directly with small and mid-tier lenders. Lenders can also choose to utilise PEXA’s technology directly, via Optima Legal, or via any UK conveyancing firm that integrates with PEXA UK’s platform, the company highlighted.

Higher remortgage volumes expected

“The acquisition of Optima Legal presents a fantastic opportunity to facilitate the roll-out of digital property settlements in the UK,” said PEXA Group managing director and chief executive Glenn King.

“In Australia the market understands and has already largely embraced the benefits of a digital property settlement solution, so we look forward to demonstrating that value to a new audience. 

“A recent consumer survey conducted by PEXA concluded that as many as one in five UK mortgage borrowers looking to remortgage in the past 24 months abandoned the process altogether.

“A digital settlement solution will deliver improved accuracy and efficiency while reducing costs.

“Given the significant volume of remortgaging activity in the UK market — and with volumes expected to increase as interest rates continue to rise — more streamlined systems are urgently needed for the benefit of conveyancers, lenders and, ultimately, borrowers.”

First-year loss expected

Optima Legal’s acquisition from Capita plc will be funded from PEXA’s existing cash reserves and is subject to customary transaction conditions and approvals, including from the Solicitors Regulatory Authority of England and Wales, PEXA confirmed. It is expected to complete before the end of the calendar year.

[Related: E-conveyancer rolls out automated messaging for brokers]