Online mortgage broker Trussle has today launched its free service for UK homeowners to new customers, which monitors their mortgage and notifies them when a cheaper alternative becomes available. The service has already been available to existing Trussle users since December last year.
The service continually monitors over 11,000 of the latest mortgage deals from more than 90 lenders, in order to get the best deal for consumers. Trussle takes into account the borrower’s current deal, inclusive of any account fees, incentives and applicable Early Repayment Charges (ERC). If another option is cheaper, the new service will immediately alert the borrower and guide them through an online remortgage process.
“We know that at least two million mortgage borrowers in the UK are failing to switch at the right time,” said Trussle CEO and founder Ishaan Malhi.
“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.”
Trussle has designed its monitoring service in a way that helps to prevent consumers from slipping onto their lender’s Standard Variable Rate (SVR) once their deal’s initial period has ended, a move that can end up costing users hundreds of pounds in higher interest rates.
According to the platform, just one month on an SVR from the UK’s top six lenders can cost the average borrower £360 in extra interest a year. There are currently at least 2m homeowners in the UK on SVRs, collectively paying close to £12bn in excess interest a year.
Once signed up to Trussle’s monitoring service, users will need to update their details every 3 months to ensure the platform is finding the best deal with correct information.
“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,” Malhi added.
“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.”
Ishaan Malhi was recently named one of Forbes’ 30 under 30 for 2018, in a listing that saw UK fintech take the forefront in the technology and finance categories.