Press release: Trussle launches pioneering mortgage monitoring service
26th January 2018
Pioneering mortgage monitoring service launched by online broker Trussle
Trussle’s free mortgage monitoring service will continuously compare any mortgage with the latest deals on the market, alerting the borrower as soon as it makes sense to switch
This is a drastic improvement on the traditional broker method of simply contacting borrowers three months before the end of their initial term
The service has been designed to tackle ‘switching inertia’ – costing UK borrowers almost £10bn each year
London, 26 January – A pioneering mortgage monitoring service provided by online broker Trussle is today being made available to all UK homeowners. Trussle’s free service continually monitors over 11,000 of the latest mortgage deals from more than 90 lenders across the market. The service compares these deals with the borrower’s current deal each day, taking into account fees, incentives, and any applicable Early Repayment Charge (ERC). If it calculates that savings could be made by switching to a new deal, Trussle will automatically alert the borrower and guide them through an online remortgage process.
Switching inertia is a major issue in the mortgage sector, so the service has been designed to prevent mortgage borrowers from unintentionally slipping onto their lender’s Standard Variable Rate (SVR) - a default product which typically has a much higher interest rate - when they reach the end of their mortgage deal’s initial period.
Just one month on an SVR can cost the average borrower with one of the UK’s six biggest lenders around £360 in extra interest. There are currently at least two million borrowers in the UK needlessly sitting on their lender’s SVR, collectively paying close to £10 billion in excess interest every year.
Signing up to the mortgage monitoring service is simple, taking just two minutes using Trussle’s website. The borrower will then receive an email confirming that their mortgage is being monitored. Until the service finds a more suitable deal, the borrower will be prompted to update their details every three months to ensure the most accurate comparison is being made. As soon as the service identifies a more suitable deal, an automated alert will be emailed to the borrower with a link to continue the remortgage process online.
Trussle has already introduced the automated service to existing customers and in December 2017 helped their very first customer Dexter Lowe switch from his original two-year fixed deal. Dexter saved over £5,000 per year by not lapsing onto his lender’s Standard Variable Rate.
Ishaan Malhi, CEO and founder of online mortgage broker Trussle, said: “We know that at least two million mortgage borrowers in the UK are failing to switch at the right time. This is either because they don’t realise the benefits of remortgaging, forget when their current deal is due to end, or they had such a bad experience getting their last mortgage that they put off going through the process again.
“With our free monitoring service, borrowers can relax knowing that their mortgage is being proactively looked after and that they’ll be alerted and guided through the switching process when the time is right.
“Offering this service to the UK’s 11 million borrowers is another step towards our goal of completely transforming the switching process and eradicating switching inertia.”
All Trussle’s existing customers have been automatically registered to the free monitoring service.
Notes to editors
How did we calculate the £360 figure? As of January 2017, the average Standard Variable Rate among the Big Six lenders was 4.1%. The market leading two-year fixed rate was 1.09% (from Santander).
The average outstanding UK mortgage value is £135K, according to statista
£135K x 4.1% = £5,535 £135k x 1.19% = £1,215
Annual difference - £4,320 Monthly difference - £360
Trussle is the UK’s first online mortgage broker. Its hassle-free service helps buyers and homeowners save time and money securing a mortgage online. Trussle is also committed to improving the mortgage switching process, ensuring that as many borrowers as possible are on the right mortgage for them. Once registered with Trussle, homeowners have their mortgage monitored daily, and are notified by Trussle when it makes sense to switch to a more suitable deal.
Borne out of founder Ishaan Malhi’s own frustrations when buying a home, Trussle provides an answer to three simple questions: What can I afford? Which mortgage is right for me? When should I switch to avoid getting ripped off?
In September 2016 Trussle launched an industry-first partnership with online property portal Zoopla, making it possible to find and buy a home in one seamless experience. Trussle is backed by some of Europe’s leading technology investors including Orange Growth Capital, LocalGlobe, Ed Wray (founder of Betfair), Ian Hogarth (founder of Songkick), Seedcamp, and Zoopla Property Group.
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.