MortgageGym, a mortgage robo-adviser, has entered into a strategic partnership with LSL Property Services as part of its latest money raising round, in which it secured £3.8m from various investors and obtained FCA approval.
LSL Property Services currently has a broker network of 2,298 mortgage advisers who collectively lent £21bn in 2017.
MortgageGym co-founder John Ingram says: “The strategic partnership is fulfilment of the human advice through our hybrid model. This fulfilment partnership enables us to scale to processing significant volumes very rapidly. MortgageGym is digitally introducing LSL brokers to our on-line customers who have been provided with preliminary advice online by the technology platform, and who have used the website to complete much of the pre-application and fact-find process that is currently a significant inconvenience and burden to consumers and brokers, such as AML, KYC and I&E.”
MortgageGym’s creators say that the robo-adviser offers free 60-second advice, “enhanced through its full integration with Experian credit files and mortgage lenders’ live scorecards.”
The firm also boasts that its instant mortgage-matching functionality meets the FCA’s request to allow customers to easily compare mortgage products, a proposal that not everybody in the industry agrees with.
Ingram adds: “Other digital mortgage platforms are constrained by their aim to organically grow their customer-base and build broker support at the same time, while our compelling fusion of ‘bricks and clicks’ will allow us to rapidly alleviate homebuyers of the uncertainty and stress of mortgage applications on a national scale.
“We have carefully chosen investors that not only bring funds, but invaluable, symbiotic business models and expertise. As a result, we do not need to invest in costly customer acquisition or building a broker-base. This places us in a much stronger position than our peers as it allows us to invest the new capital in improving our technology – thereby improving customers’ choices.
“The UK mortgage market is poised for digital revolution, and we are here to drive it”.
In early August, Mortgage Strategy asked a selection of people industry voices for their views on the role of technology in the mortgage sector so far, and how it may look in the future.