People will soon be able to find a property, secure a mortgage with advice and then buy it with a few simple clicks of a button.
That is the daring prediction of the ambitious chief executive of mortgage broker Trussle.
Ishaan Malhi said: “I am not giving it a timeline, but I think there will be a time when you will be able to find a house, secure a mortgage and then purchase it instantly. A bit like how you would go on Amazon to buy a book. The real winners will be customers as it will make for a better experience.”
The 27-year-old is already looking at ways of pushing the envelope when it comes to offering advice on mortgages. He is examining methods of computerising the part of an online process on his website Trussle, which involves an adviser gauging the suitability of a home loan. He is considering ways to create a sophisticated software system that mimics the function of an adviser, to provide such a service online. He predicts it might even happen in the next year.
Trussle has been referred to as “robo-advice”, which allows customers to find mortgage offers that suit their salary and savings in a few clicks.
Through the online mortgage broker, Mr Malhi has pioneered complex algorithms that have been built into software to let clients find out if they are eligible for a mortgage and even suggest three suitable offers. If a client wants to complete the process by speaking to an adviser, they can do so via a telephone, live chat or email. Trussle does not offer a face-to-face service.
He said: “When people hear the term ‘robo-advice’ they think it’s a robot doing everything and that’s simply not the case. The service is not distant or absent from a human touch. In fact, what we do is use technology to increase the level of personal service. A lot of human thought, time and energy has gone into developing sophisticated and advanced algorithms in the underwriting process to allow people to secure the best mortgage for them.
“The industry has been starved of innovation. But we have been constantly looking at ways to put our customers first and improve the service for them. People want a more convenient service and it makes sense to utilise technology this way.
“The service is all fully regulated by the FCA – just as with any other mortgage adviser.”
It is important to stress that although technology is used to complete a lot of the process online, all deals are signed off by an adviser.
When questioned about possible effects of technology glitches, he said the firm has invested heavily in the process and added: “If you have sophisticated technology, the data can most often do a better and more robust job than a human.”
It comes as no surprise that a lot of Trussle’s clients are tech savvy and in their late 30s. However, technology has not put off clients in their 60s from using the innovative service.
Robo appeal
Figures released by the firm confirm 95 per cent of Trussle's mortgage submissions are approved by lenders, above an industry average of 75 per cent to 80 per cent approval. Business is clearly booming as Trussle’s workforce has doubled from 14 at the start of the year to 37 at present. The firm is moving to a bigger office in London to accommodate this.
The mortgage broker appeals to three types of clients. First are aspirational homeowners, who can type their details online to secure a mortgage in principle so that they have the confidence to look for and eventually buy their home. Trussle has teamed up with online property search engine Zoopla to ensure people browsing for their dream home can complete an online calculation to gauge if they can afford the property they are contemplating. If they meet the criteria, the link redirects them to Trussle’s online service so they can start the process of securing a mortgage.
The next type of clients are motivated buyers who have found a property and need a mortgage to buy their home. The service aims to cut the time it traditionally takes to secure a mortgage by completing the process online. Clients can even send their identification and documents online using sophisticated digital software that verifies their authenticity. However, the broad spectrum of lenders means Trussle has to capture documents in the style stipulated by each lender.
Mr Malhi is in talks with the regulator and industry bosses to develop an industry standard for capturing documents online, which will lead to a robust and even playing field.
The third type of client is already a homeowner, but is looking for a better rate. That is why once a client has secured a mortgage through Trussle, the firm continues to monitor it to see if a better rate is available.
Trussle was born out of Mr Malhi’s own frustration in struggling to secure a mortgage for his first home.
He said: “My self-employed status at the time meant I spent ages filling out forms and paying fees, only to be told I was not eligible. It took the joy out of buying my own home. I have experience in the mortgage industry and even I found the process difficult to navigate That’s when I thought there must be a better way.”
He set up Trussle in 2015.
Currently, if a client is not eligible for a mortgage, the service provides links to blogs and advice where they can help improve their credit score or circumstances. Although this is generic at the moment, Mr Malhi said he is hoping to improve it to make the reply more personalised in the future.
Aamina Zafar is a freelance journalist
Ishaan Malhi career highlights
2015-present: Chief executive, Trussle
2015: Founded Trussle
2014: Entrepreneur in residence, Playfair Capital
2012 – 2014: Mortgages and real estate analyst, Bank of America Merrill Lynch
2012: Graduated from Bristol University with a BSc in economics and Spanish
