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LONDON -GoCompare, the comparison website, has invested in MortgageGym, a mortgage robo-advisor, to create a mortgage comparison site.
Robo-advisors are programmed to work with minimal human intervention and provide the best solutions based on algorithms.
The service allows UK home-buyers to complete their entire mortgage application online in just 15 minutes. MortgageGym is free to use, and finds appropriate options within 60 seconds. It also offers both automated advice and live advisors.
“GoCompare has brough transparency for customers when researching other financial services products. Consumers deserve that same transparency, ease and clarity in assessing mortgages,” said CEO of MortgageGym John Ingram. “MortgageGym does just that in real time, by matching consumers with lenders and products that they can afford,” he said.
Mortgage Market Tracker estimated in November 2015 that over 53% of consumers abandoned mortgage applications before completion, due to friction points in the process. In comparison to traditional advisors, MortgageGym says it offers customers more realistic and affordable options, based on strict criteria.
“The mortgage industry in the UK is one of the last bastions of financial services to be disrupted by a digital solution,” said CEO of GoCompare Matthew Crummack. “We look forward to being able to offer our customers transparent and rapid access to mortgage advice through our partnership with MortgageGym,” he said.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, called GoCompare’s investment an “important step on the group’s journey to diversify its revenue base away from insurance.”
MortgageGym previously secured investments of £2.5 million from tech investors Gaby Salem, China Pacific Capital, Trifecta Capital and former Deutsche Bank CEO Henry Ritchotte. It plans to launch this summer.