Octopus Ventures has invested £1.52m in Money Workout, an online lead generation firm with an in-house brokerage.
Money Workout generates £1bn worth of mortgage enquiries per month and is headed by managing director Matt Andrews, formerly managing director of sub-prime consumer sales at Merrill Lynch.
Andrews says the firm’s proposition is based on providing lenders with a lower cost alternative to their own direct marketing channels.
It has a regulated broker team that qualifies leads, which Andrews says offers the same level of service as a broker and allows it to pass leads to lenders on a direct-only basis and still receive commission.
He says: “Our leads convert at 70% to agreements in principle at less than half the cost of lenders’ own costs of processing enquiries.”