Better acquires UK digital mortgage broker Trussle
US digital homeownership platform Better is set to acquire UK online mortgage broker Trussle for an undisclosed amount.
The deal represents Better’s first entry into the UK mortgage market, where it aims to replicate its success in the US.
Trussle was founded in 2015 and provides independent advice to customers who are looking to buy a home or refinance an existing mortgage. The company assesses customer suitability, provides advice on mortgage and protection products and interacts with over 90 lenders.
In total, Trussle claims to have sourced over £2.7bn of mortgage approvals for UK consumers, with £1.1bn of this coming in the last 12 months.
Vishal Garg, founder and CEO of Better, says research of the UK market showed considerable inefficiencies, with the mortgage process taking months to complete and with consumers incurring high costs.
He says: “Making homeownership affordable and accessible for all customers is a key tenet of a well-functioning credit system and we are here to help grow Trussle and make it even better.”
Trussle will accelerate Better’s entry into the UK market with local knowledge and mortgage technology for the UK. Trussle captures data on customer demand, lender pricing and risk eligibility matrices, and Better’s technology will be used to provide analysis of these areas.
Another intention is for Better to enhance Trussle’s revenue profile by partnering with it to develop B2B relationships with estate agencies, property developers and financial services companies. It also plans to invest in customer acquisition and drive attachment rates across product offerings, including insurance and title services/conveyancing.
The terms of the transaction have not been not disclosed and the deal is subject to regulatory approvals in the US and UK. Current CEO Ian Larkin and the existing management team will continue to lead Trussle following the acquisition.
Founded in 2016, Better’s services included mortgage, real estate, title and homeowner insurance. Better has raised over $400 million in equity capital.
Trussle itself has raised £26.5 million in funding, most recently in 2020 in a Series C round of £7.5 million featuring the venture capital arms of both Rabobank and Goldman Sachs.