The Financial Conduct Authority has named two mortgage firms as having been successful in testing in the fourth cohort of its regulatory sandbox.
The sandbox allows successful new business applicants to carry out a trial-run on consumers for three to six months.
The first of the new mortgage businesses to receive approval is Dashly, described as a “fully autonomous, ‘always-on’ mortgage advice platform”. The firm is said to continuously track and compares a borrower’s existing mortgage, “alerting them the moment it pays to switch”.
The second business to have been approved is Mortgage Kart, which is outlined as an “automated-advice offering to help customers pick the most suitable mortgage given their needs and circumstances.”
Both firms are listed on Companies House.
Across the financial services industry, 29 firms in total were successful in their sandbox applications on this round.
FCA executive director of strategy and competition Christopher Woolard says: “I am pleased to say that this is the largest sandbox cohort to date with a record number of applicants meeting our eligibility criteria.
“Cohort Four has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process. Alongside these we can see significant use of distributed ledger technology, some experimentation with cryptoassets which will help inform our policy work and propositions aimed at helping lower income consumers.”