Better.com acquires UK digital mortgage brokerage company

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Venture Capital Mortgage Lender Better.com goes to the international level. A company that expected to become public later this year agreed to acquire a digital mortgage broker in the UK. Farm

Terms of the deal were not disclosed, but the Financial Times reported what SoftBankThe backed Better bought Trussle at a “down price” that estimates the mortgage brokerage at just $ 9 million.

Trussla is an American bank among investors. Goldman Sachs and a venture capital fund from Amsterdam Finch Capital… Trussle, founded in 2015 raised £ 26.7 million from early 2020 with plans to usurp the traditional mortgage brokerage firms that dominate the $ 1.5 trillion UK home mortgage market.

According to the FT, Trussle is losing money and trying to sell itself. Goldman paid about £ 8 million for 20% of the company.

Better is one of America’s fastest growing lenders. About $ 24 billion in mortgage loans were issued in 2020, up from $ 5 billion the previous year. A digital-only lender whose loan officers charge no commission has taken advantage of an incredible refinancing boom.


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Trussle is working with over 90 lenders to close mortgages for UK homeowners, Better said. It collects data on consumer demand, lender prices and risk acceptability. It will use Better technology to find and execute trades.

Since 2015, Trussle claims to have received over £ 2.7 billion in mortgage approvals for UK consumers, including £ 1.1 billion over the past 12 months. CEO Ian Larkin and the existing management team will continue to lead Trussle following the Better acquisition.

As in the US, the UK housing market is on fire. And this despite Brexit and the gradual abolition of stamp duty leave, essentially a waiver of property transfer taxes for homes purchased under £ 500,000.

Housing prices in May increased by fastest annual rate in seven years, although they cooled down a little in June. As in the US, people across the UK are looking for larger homes in the suburbs outside the cities.

In a press statement, Better founder and CEO Vishal Garg said the acquisition would allow his company to cut fees and hours spent trying to get a mortgage in the UK.

“Better removes the high funding costs, massive transaction friction, tyranny and mind-boggling bureaucracy that comes with obtaining a mortgage and buying a UK home through a major bank,” Garg said. “We’ve researched the UK market and were surprised to see how we can make it so much better for first-time consumers buying and financing a home. We found like-minded people on the Trussle team who have developed a platform that we can work with to help every Briton own a home. ”

Despite tightening boundaries in the industry and questions about how to overcome the cyclical nature of the mortgage business, Better managed to make a fortune in venture financing.

In May, he announced a merger with Aurora Acquisitions Corp., a blank check company sponsored by Novator Capital… As part of the SoftBank deal, Masayoshi Sona will invest $ 1.5 billion in the combined company.

What’s more, it claims its value after share capital will be $ 7.7 billion, making it more valuable than anything but Rocket companies as well as United wholesale mortgage… Industry experts say Better will need to prove it can excel in the procurement market to come close to justifying such a valuation.

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