New online comparison service launches to shake up UK mortgage market
Rateswitch, a new online mortgage comparison service, has launched in a bid to help millions of homeowners across the UK reduce their monthly bills.
The company, which has already been valued at £1 million following significant pre-launch investment, provides homeowners with the resources to save costs.
Designed as an easy-to-use platform, it gives British homeowners a way to regain control of existing mortgage costs by finding the best loyalty deals online.
Following months of development, the website is now live and is free to use. The firm has raised an undisclosed sum of investment from Finance Wales.
It was founded by Lee Flavin, a Cardiff-based mortgage adviser, alongside marketing professionals Jason Stallard and Lyanna Tsakiris. They want to make finding a mortgage easier.
The website breaks down the best loyalty rates available from your current lender, and works in a similar format to comparison sites such as Go Compare.
Around 40 per cent of British home owners repay their mortgages using standard variable rates, which is often uncompetitive and default. Rateswitch finds more feasible rates.
To use the system, you simply select your current lender, mortgage balance and estimated property value. Once you’ve done that, you can access loyalty rates accurately sourced by the platform.
Lee, CEO at RateSwitch, said: “It’s been a long-held mission of mine to not only raise greater awareness of the unnecessary costs SVRs bring, but to provide homeowners with a tangible solution to the problem, so we’re absolutely delighted to be partnering with Finance Wales on this.
“We’re very excited to join the current wave of start-ups striving to simplify complex processes within the mortgage industry and believe our existence will go a long way towards helping homeowners save money on their mortgage quickly, and with minimal hassle.”
In 2016, Rateswitch took part on IdeasFund, Wales’s first tech accelerator. The firm was provided with support and funding to aid development and growth.
Paul Harwood, co-founder of IdeasFund, said: “The potential RateSwitch has to turn the way homeowners view the mortgage market as a whole upside down cannot and should not be underestimated.
“2016 was a year of exceptional innovation within the mortgage industry through ongoing advances in automation and digitalisation.
Sarah Smith, portfolio investment executive for the Technology Seed Fund at Finance Wales, said: “Rateswitch has great potential with a truly innovative concept.
“We were delighted to provide the company with the growth capital it needed to establish a commercially viable online platform – which could benefit thousands of homeowners across the UK.”