Once borrowers have added their data into the account the Blink lighthouse-shaped magnet is connected to Dashly’s mortgage switching technology which compares existing deals against those available on the market every day.
If the Blink lighthouse flashes pink instead of the normal green it means a cheaper deal has been found – this even includes being in a fixed rate with early redemption charges applying.
The app also warns when a fixed-term is set to expire.
Borrowers can then be directed to one of the firm’s advisers if they wish to proceed.
In one example, Dashly switched a borrower halfway through a five-year fix saving £5,717 over the remaining two years and five months of the mortgage — after the borrower paid an early repayment charge of £4,978 and all other set-up, legal and arrangement fees.
It had identified the value of the borrower’s home had increased and that his personal circumstances had also changed since taking out the loan. This meant he would now be eligible for a lower loan to value.
CEO Ross Boyd said: “It’s a bit of fun, of course, but there’s a serious message to it all, too: your mortgage shouldn’t be forgotten about but should be compared against the market daily to ensure you’re always on the best deal.”
Boyd added that the vast majority of Brits only think about their mortgages only every two, three or five years.
“This is because we’ve been trained to believe that paying an early redemption charge means it’s impossible to save money during a fixed rate mortgage, but that’s no longer the case given the new technologies available,” he said.