Better.com To Enter UK Mortgage Business With Trussle Acquisition

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21

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In line with plans to provide its services to international consumers, Better.com acquires London-based online mortgage broker Trussle Lab.

Terms of the deal were not disclosed.

International housing finance is estimated at $ 3.6 trillion out of the more than $ 15 trillion in Better’s services market, according to an estimate from Better HoldCo’s June investor presentation. upcoming merger with Aurora Acquisition, a specialized purchasing company. This amount surpassed the $ 3 trillion opportunity expected in the US in 2021 and 2022, based on Fannie Mae Predictions

Both Better and Trussle have several big investors on their lists. American Express as well as Softbank are among the supporters of Better, and Rabo Frontier Ventures (a division Rabobank) and Goldman Sachs have invested in Trussle, according to Crunchbase.

“We 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,” Vishal Garg, CEO of Better, said in a press release. “We found like-minded people on the Trussle team who developed a platform that we can work with to help every Briton have their own home.”

Total UK mortgage lending in the first quarter was 83.3 billion pounds ($ 115.7 billion), the highest since the fourth quarter of 2007, according to the Financial Conduct Authority. That’s up from 76.6 billion pounds ($ 106.4 billion) in the fourth quarter and 65.8 billion pounds ($ 91.4 billion) in the first quarter of last year.

According to the FCA, the total amount of mortgages in the UK as of March 31st is 1.56 trillion pounds (2.2 trillion dollars).

According to a January report by the Association of Mortgage Brokerage Lenders, £ 283 billion in total mortgage lending ($ 393 billion) is expected by 2021.

Trussle does not charge borrowers for its services; instead, it receives an attorney’s fee from the lender, which is similar to the yield spread premium that US wholesalers pay to mortgage brokers. The company’s website says that, on average, UK mortgage brokers charge a fee of £ 500 ($ 694).

“It has been 27 years since the launch of the World Wide Web and most of the consumer industries have adopted it by now, but the UK mortgage market is still characterized by analog systems and processes,” said Ian Larkin, CEO of Trussle. “This market should not require consumers to apply for a mortgage five months before the end of the stamp leave.”

Trussle’s management team, including Larkin, will remain in place following the completion of the acquisition.



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