American firm enters UK mortgage market with Trussle buyout

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The farm has become second digital mortgage broker in the UK, which will be acquired by a US company this week.

Better, an American digital mortgage broker, is set to enter the UK market with its latest purchase.

The firm-buyer estimates the possibility of purchasing a home in the UK at £ 1.5 trillion. He intends to leverage this treasury and replicate the growth of his business, headquartered in New York, where it has raised over $ 400 million (£ 340 million) in equity since its inception.

Trussle received £ 26.7m in January 2020 from sponsors including Goldman Sachs and Finch Capital, but Financial Times sources suggest it is currently being sold for as little as $ 9 million (£ 6.5 million).

Vishal Garg, founder and CEO of Better, called Trussle a “soul mate” abroad. When his team researched the UK market, he said they were “surprised” to see how ripe the home finance market was for disruption.

“[Trussle] has developed a platform with which we can work together to help every Briton have their own home, ”he said.

Founded in 2015, Trussle, a year older than its buyer, advises consumers looking to buy a home, refinance an existing mortgage, or purchase protection. He works with approximately 90 lenders to close mortgages obtained through his platform.

Over the past 12 months, the company claims to have received approximately £ 1.1 billion in approved mortgages, representing 41 percent of the total received since 2015.

This can be compared to Better, which claims to have financed $ 30.9 billion (£ 26 billion) in home loans and provided more than $ 7 billion (£ 6 billion) in cumulative coverage through its insurance divisions.

In a note announcing the Trussle acquisition, Better cited “an experienced management team, local knowledge and fundamental mortgage technology” as reasons for the deal.

Better said he intends to increase Trussle’s profitability by developing a number of business relationships with real estate agencies, developers and financial services companies.

It will also invest in customer acquisition and increase engagement with product offerings, including insurance and ownership transfers.

Likewise, a US-backed organization RVU bought Mojo Mortgages this week – another UK digital mortgage broker – largely because of its technology, with a vision of scaling it up after a deal is closed.

RVU, a European business set up by South Carolina-based media company Red Ventures, also owns Uswitch and Confused.com.

Tariq Sayed, CEO of RVU, said: FTAdviser: “This deal is more about technology than growth. We need to help Mojo expand their technology so they can take over our scope. ”

Similar to Mojo’s move to RVU, the entire Trussle team will also move to Better. Ian Larkin (on the picture), CEO of Trussle, will continue to lead the post-acquisition digital mortgage broker.

“The UK mortgage market continues to be characterized by analog systems and processes,” said Larkin, who believes Trussle’s acquisition by “a large and growing international organization” will further disrupt the UK market.



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