Three fintech investors have agreed to advance £700,000 in technology development finance with a further £1.3m raised in cash.
The start-up aims to provide mortgage consumers with a hybrid service which will combine a search for eligible deals within one minute, regulated rob-advice and access to advisers.
It will announce its distribution partners within the next three months and has plans to secure 10% of UK mortgage customers through these tie-ups and its own website within three years.
John Ingram, CEO and founder of MortgageGym, said: “We are thrilled to have secured such a significant vote of confidence in MortgageGym’s proposition from well-respected investors.”
The digital advice and mortgage process has been the subject of much discussion recently. Speakers at the Building Societies Association conference discussed how a digitised mortgage process could look, 360DotNet noted that technological developments would require broker and lender co-operation, while Legal and General explained that working with robo-advisers had been “fascinating”.
15 minute completion
MortgageGym claims it will be able to provide borrowers with a detailed insight into the mortgages they can afford within 60 seconds based on live affordability searches from 12 lenders in the market. The firm has not yet announced the names of the lenders but says UK homebuyers will be able to complete their mortgage application online in 15 minutes.
As the online portal is fully integrated with consumer credit files provided in partnership with Experian, Mortgage Gym believes it can solve the vast majority of the back-office compliance brokers need to complete.
“MortgageGym is committed to revolutionising the mortgage market through a whole-of-market, digital, free and accurate application process, which is the first of its kind,” said Ingram.
“We will provide mortgage applicants with peace of mind by advising them on mortgages they can realistically attain based on the strict affordability grounds laid out in the FCA’s Mortgage Market Review.”
The service will offer mortgages for first-time buyers, homemovers and remortgages with access to prime and non-prime products. Buy to let has not be integrated into the software yet.