Mortgages  

Robo-broker bags £7.5m of funding

Robo-broker bags £7.5m of funding

An online mortgage broker has secured more than £7m of fresh funding as it plans to rapidly develop its technology and continue to “disrupt” the market.

Trussle, which launched in December 2015 in a bid to ‘make mortgages fairer’, announced it had received £7.5m from new investor Rabo-Frontier Ventures alongside existing investors Goldman Sachs Merchant Banking Division, Finch Capital and Propel Venture partners.

The new funds bring the total invested in the business to £26.7m.

Trussle has grown rapidly over the past year, almost doubling the volume of customers. The business recently expanded its senior leadership team appointing chief technology officer Todd Zino and veteran banker Simon Williams as chairman.

The firm works as a broker, providing online advice to consumers searching for a mortgage, but also aims to tackle the so-called ‘switching inertia’ which leaves consumers stuck on expensive standard variable rates.

It alerts consumers who have moved to their providers' standard rates when their fixed deal comes to a close and explains they could get a cheaper deal elsewhere.

Mr Williams said: “Owning a home should bring stability and freedom. Unfortunately, the reality is that finding a mortgage often creates stress, inconvenience and unfair treatment.

“Since Trussle launched, we’ve helped thousands of homeowners get onto the property ladder and reduce their mortgage payments by switching to the right product. But there’s ample work to be done in revolutionising the archaic industry.”

Mr Williams said the business was at a “pivotal stage” in its journey and that the new funding would enable it to accelerate its progress, especially through investment in its technology to make the mortgage process “quicker, easier and more transparent”.

Harrie Vollaard, head of Rabo Frontier Ventures, said, “The slow-moving and complex mortgage market is one of the biggest pain points of owning a home.

“Trussle is leading the way in reshaping the way people interact with their mortgage by utilising technology to make mortgages smarter, faster and fairer.”

Mr Vollaard said he was looking forward to working closely with Trussle on the next phase of its journey.

imogen.tew@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.