Acquisition warpath: After snapping up Trussle, US online mortgage broker Better.com buys Property Partner

After a tumultuous few years, Property Partner has found a new home under the ownership of US online mortgage giant Better.

Terms of the deal were not disclosed when it was announced earlier this month, but a host of improvements to Property Partner’s service were.

Starting next month Property Partner’s fees—which triggered controversy in 2019 when they were introduced amid a race to shore-up the fintech’s finances—are being slashed.

The platform’s annual assets under management fee will reduce from 1.2 per cent to 1 per cent, while its monthly account fee of £1 will be completely removed.

Announcing the deal Better’s CEO and founder Vishal Garg proclaimed, “Property Partner is the future of residential real estate” and pledged that US and international properties will soon be listed on the platform.

“Combining Property Partner’s unique residential property investment platform with Better’s arsenal of homeownership products and services, changes the game for the future of real estate investment.”

Another advantage from the takeover will be harnessing Better’s mortgage expertise to improve the financing on Property Partner’s properties, which the firm says should enhance the investment returns for all clients.

The deal also comes after Better acquired UK online mortgage broker Trussle, in a move to kickstart its UK market share.

Founded in 2016, Better has so far funded $30.9bn of home loans and provided over $7bn in insurance coverage, while Trussle has sourced over £2.7bn of mortgage approvals here in the UK and £1.1bn of that is in the last 12 months alone.

Better is also preparing to become a listed company later this year in Q4 via a special purpose acquisition company (SPAC) merger with a post-money valuation of around $7.7bn.