Comparison of UK Mortgagetech Companies

November 20, 2020
Antonio Flores

Many new Internet technologies have arisen over the past few years, allowing businesses to automate and digitize a great deal of their work. To this day, however, the mortgage field remains one of the most paperwork-heavy banking sectors. However, the technologies have the potential to revolutionize the processes of lending, comparing, brokering, notarizing, and receiving mortgage loans. In the UK, many companies and startups have risen to the task and begun creating entirely virtual platforms to make remote the different parts of the process.

Trussle.com is an online mortgage broker based in London. Their service is free to use for the customer, and is connected to 12000 mortgage packages from 90 lenders, including some of the largest such as Barclays, HSBC, and Nationwide. The trussle.com website also contains a variety of calculators which borrowers can use to determine various metrics.

Lendinvest.com, on the other hand, is a platform for property finance used by intermediaries and landlords. The entire process for applying for mortgages is online, and it is possible with this company to sign and receive signed documents remotely. Last year, they did nearly a billion dollars in business, and oversaw 58% of peer-to-peer property lending in the UK. 

While the other two companies mentioned are general mortgage companies, Landbay is a specialized company, focusing primarily in buy-to-let mortgages to investors and landlords. They have lent 625 million pounds to date for 837 million pounds of property, and have a default rate of 0.1% last year.  

Starling Bank is somewhat different from the others, as it is an entirely online bank, which does not currently offer any mortgage products. However, this year, it received permission from the UK government to make the entire lending side of the mortgage process remote, the first all-mobile bank to ever do so. It remains to be seen whether and when they will begin to release mortgage deals.

In conclusion, there are a number of technology companies in the UK revolutionizing different parts of the mortgage market for all parties. These companies make the process of filing a loan remote, often with greater speed and lower default rates than traditional mortgage methods, and because of this represent the future of the mortgage industry in many ways. Many of them are already some of the largest players in the mortgage industry; after the drastic change of the COVID-19 pandemic response, these companies and companies like them are only likely to gain influence and market share in the UK and elsewhere, as formerly paper-dominated industries begin to use remote methods of reporting and filing.

https://trussle.com/

https://www.lendinvest.com/

https://landbay.co.uk/intermediaries

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