Mortgage Gym muscles into UK market with robo-adviser launch
The “world’s first, regulated mortgage robo-adviser” Mortgage Gym will be launched in the UK in the coming months – offering online applications in 15 minutes.
The service is regulated by the UK’s Financial Conduct Authority (FCA), is free and combines robo- and live-broker advice. Mortgage Gym says its network allows brokers to acquire customers independently, operate a paperless business and remain compliant under the Mortgage Market Review (MMR). Its online portal is integrated with consumer credit files provided in official partnership with Experian.
John Ingram, CEO and founder of Mortgage Gym, says the UK mortgage industry is “one of the last bastions of the financial services industry to still operate via paper files and telephone-based advice”.
Following the MMR, the company says only 47% of homebuyers who begin the mortgage application process reach completion and 67% of lenders cite “too much paperwork” as the main source of consumer frustration.
Mortgage Gym believes an additional source of frustration for homebuyers is the disjoint between what they believe they can borrow based on comparison site suggestions, which are not based on the buyers’ financials, and the reality – which its portal aims to solve.
The firm was founded in 2016 by Ingram, who previously was the founder and MD of financial services firm Burlington Group (which was acquired by Marston Holdings); and David Vertannes, who was formerly co-founder and partner at Orchard Property Group. Mortgage Gym became fully regulated by the FCA in February.
The language of mortgages
In terms of digital mortgages, Turkey, Canada and the US have had similar ideas.
Turkey’s largest bank, Isbank, introduced a digital mortgage process where users can follow up credit pre-approval, the actual appraisal and overall credit process 24×7.
Ontario-based Alterna Bank says it launched “Canada’s first and only end-to-end digital mortgage”.
In the US, Chase is planning to launch a new self-service mortgage platform for its 43 million digital users, and will allow customers to digitally track their application – from start to finish.