Banks have a bigger role to play in new mortgage payment option

Abstract

The pilot-launch of Payment Arrangements for Property Transactions (PAPT) scheme means that banks will be able to play a more active role in effecting mortgage fund transfers to relevant institutions and parties, which previously were the responsibility of a solicitor. With authorised banks now able to electronically pay the mortgage loan secured by a homebuyer directly into the bank account of the seller, PAPT is designed to facilitate the development of digital finance while strengthening the protection of mortgage customers.