Mortgage brokering just got more interesting with what’s being described as the world's first digital mortgage broker called 'Habito' and Trussle potentially about to shake up the sector.
Habito founded by Daniel Hegarty, pitches itself as the U.K.’s “first digital mortgage broker” — though Trussle another new high tech mortgage platform may disagree — and offers a “fully automated” brokering service to help you find the most suitable mortgage and make an application.
What is Habito?
Habito say that they are a group of designers, engineers, mathematicians and mortgage experts with a really big idea. They want to change the way people perceive and interact with mortgages forever
To do this, it has built tech that claims to analyse every mortgage on the market across 100 lenders to identify the best deal based on your individual circumstances. You’re then able to apply via Habito in (they claimed) under 30 minutes.
“We think the whole mortgage application process, from start to finish, should be automated,” Habito’s Hegarty explains to TechCrunch. “We’ve built proprietary tech that analyses over 15,000 mortgage products across 100 lenders in seconds, but more importantly, it identifies the best mortgage for each unique applicant and allows them to apply online from their phone, tablet or desktop in less than 30 minutes.”
Habito Video Marketing
Mortgage Market Review
Owing the Mortgage Market Review its harder for UK citizens to get a mortgage. It is no exaggeration to describe the mortgage market review or ‘MMR’ as the single biggest shift in mortgage market regulation in recent years.
At its core the MMR changes included:
- Banning self-certification mortgages
- Tightening the rules around interest-only mortgages
- Requirement to check affordability to be checked more stringently
- Requires tighter qualifications of sales staff
- The changes of the mortgage market review have a big impact on borrowers looking for a mortgage now.
The crack down on expenditure, and not just income, means big costs like childcare will be taken into account, but also any other regular payments like magazine subscriptions, mobile phone bills to a Sky account.
The more dependents you have on your income – from a car to a habit of dining out once a week or going on holiday twice a year – the less you will be able to borrow. Guide to Mortgage Market Review at Uswitch
What is the Mortgage Market Review?
Technology and Mortgages Combine
Habito explains that in the UK 4 in 5 people seek advice from a broker. The average mortgage broker will look at 11–12 lenders and process your application in about 2–3 weeks. Now Habito technology allows access and analyse every mortgage deal from over 60 lenders in seconds.
You can sign up with us on your phone or tablet, 24/7. But we also understand that sometimes you just want to talk to somebody, which is why we have experts on hand to guide you through the process if you want the extra comfort a human can provide.
Financial Conduct Authority
The Financial Conduct Authority is the conduct regulator for 56,000 financial services firms and financial markets in the UK and the prudential regulator for over 24,000 of those firms. Habito is directly authorised and regulated by the FCA, so is held to the highest standards of conduct. Trussle is a trading style of Trussle Lab Ltd, which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.
Trussle the FINTECH start up
Trussle is a London start-up founded in 2015 by Ishaan Malhi, a former real estate and structured finance analyst at Bank Of America Merrill Lynch, and Jonathan Galore, an experienced entrepreneur. Trussle aggregates mortgage products via an API feed provided by a specialist company, and works with the Mortgage Advice Bureau (MAB), giving it access to roughly 11,000 deals from 90 lenders in the UK market
Why would I use Trussle instead of a traditional broker or my bank?
Trussle explains that unlike banks and traditional brokers who typically have limited office hours, our service is available online 24/7. And you won’t have to fill out reams of paperwork. Or wait to speak to an advisor on the phone when they have time in their schedule. You won’t have to pay any fees for advice. They also notify you when it makes sense to switch mortgages at a later date.
FCA and Estate Agents Clash
Some agents earn money from referring customers to particular brokers. In a report updating a review of the mortgage market the regulator said that it would look into relationships between brokers, lenders and estate agents. It said it was concerned that these relationships were creating conflicts of interest as consumers were spending more than necessary if pressured to use particular firms.
Some estate agents imply that using a particular broker might be "necessary to view or secure a property," the report said.
It also said that fees paid to brokers by lenders when mortgages are completed might tempt brokers to recommend these mortgages, even when they are not necessarily the best available for the buyer.
Brits finding it hard to get mortgages
More than 20 million people risk being rejected for mortgages, loans and credit cards as banks shun those without squeaky clean credit reports. Many could be turned down unfairly as more than a third of people who have checked their credit score have found errors on their file, according to research from Amigo Loans.
It is vital that anyone who wants to borrow checks their credit score before applying. If there are mistakes or fraudulent activity they can then be corrected to improve your rating and your chance of being accepted for credit
You can access your credit score for free via experian.co.uk , clearscore.com and noddle.co.uk .