MortgageGym, which according to its creators is the world’s only regulated mortgage robo-adviser, has completed a £2m seed funding round ahead of its launch.
The platform has raised over £1.3m in cash and technology development finance through deals with fintech investors Gaby Salem of Wharton Asset Management, China Pacific Capital and Trifecta Capital.
MortgageGym expects to announce its strategic distribution partnerships within the next three months, and its official launch is set for the summer.
The FCA-authorised service will allow homebuyers to complete their mortgage application online in 15 minutes through a free, hybrid advice website offering mortgage eligibility matching within 60 seconds, regulated robo-advice and access to live advisers.
While other online mortgage brokers already exist, including Trussle and Habito, MortgageGym’s creators say it is unique because the website itself is authorised to give advice, which the user will receive before they come into contact with a broker.
John Ingram, chief executive and founder of MortgageGym, said: “We are thrilled to have secured such a significant vote of confidence in MortgageGym’s proposition from well-respected investors.
“MortgageGym is committed to revolutionising the mortgage market through a whole-of-market, digital, free and accurate application process, which is the first of its kind.
“We will provide mortgage applicants with peace of mind by advising them on mortgages they can realistically attain based on the strict affordability grounds laid out in the FCA’s Mortgage Market Review.”
Mark Loydall, director at Cambourne Financial Planning in Loughborough, said he did not think the rise of robo-advice would have an impact at the higher end of the IFA market.
“If it is a way of expanding advice, then great,” he commented. “It may make us more efficient, but it may not- we have to just wait and see.
“One of the biggest weaknesses at the moment is the IFA software. If by going down the robo-advice route we get better software for everyone, that is a good thing.”