Its system will analyse customer spending habits from their accounts through Open Banking sourcing and then select the best product available to them.
Mojo Mortgages CEO Richard Hayes told Mortgage Solutions: “Our Mortgage Matcher will analyse a customer’s spending habits to automatically recommend their perfect deal.
“The technology will identify customers’ existing mortgage or rent payments and let them know if they could save money with a better deal.
“The eligibility service, which is also available to Mojo’s strategic partners, combines automation and machine learning to give customers more accurate mortgage recommendations, online and in real-time,” he added.
It began with a Facebook Messenger chatbot and after rebranding, is now evolving its offering to take advantage of Open Banking and application programming interface (API) technologies.
The £7m Series A funding is one of the biggest raises reported outside London in the last 12 months and came from NVM Private Equity and Maven Capital Partners, alongside other investors.
Mojo noted that the UK mortgage market was the largest in Europe, but investment into the sector has been disproportionate in comparison to other financial verticals.
“This has resulted in poor customer experience and a significant lack of innovation,” it said.
Co-founder Nick Sherratt added: “We’re delighted that Maven and NVM have joined our existing investors in backing our ambitious strategy for growth.
“Through innovation and continuing to build and develop our amazing team, we will achieve our vision of a better mortgage experience for everyone.”
Better mortgage journey
NVM investment associate Charlotte Clarke said the firm was “incredibly excited” to be backing the next phase of Mojo’s growth.
“We are particularly excited by the substantial market opportunity and management’s enthusiasm to create a better mortgage journey for consumers,” she said.
Maven investment manager Jeremy Thompson added: “Mojo has created a fantastic platform which allows customers to compare and apply for mortgages online, with advice from experienced mortgage brokers.
“The Mojo team led by Nick and Richard is on a mission to change the way we buy mortgages in the UK, and they are driven by improving the mortgage experience for customers. Maven are hugely excited to be supporting the team to help them achieve this.”