LendTech startup launches 'comparison site killer'
Written by Peter Walker
Dashly, the UK’s first ‘always-on’ mortgage switching platform, has launched today, claiming to have the potential to kill comparison sites.
The LendTech startup gives consumers free, automatic alerts when it pays to switch to another mortgage, without having to manually update their mortgage data.
The company is currently in the Financial Conduct Authority sandbox because the alerts it sends to its users constitute fully automated advice. Due to this status, Dashly is restricting the number of people it onboards each week and some prospective users may be asked to join a waitlist.
Dashly shifts the focus of the traditional mortgage search away from fixed rate periods, instead scanning the market daily, even if there are years left on a borrower’s current mortgage deal. The system tests thousands of products against a homeowner’s unique circumstances — such as their mortgage rate, property value, loan-to-value and declining mortgage balance.
If a homeowner decides to take out a mortgage found by Dashly - either direct or via a fee-free, independent Dashly broker - it restarts the mortgage comparison process the next day.
A statement from the startup argued that some existing robo-brokers claim to alert borrowers when it pays to switch to a cheaper deal, but in reality, this “veneer-ware” still relies on calendar-based alerts that tell brokers when fixed-rate deals are close to expiring, or is dependent on the customer manually updating their information.
Dashly founder Ross Boyd said: “While the robo-brokers have introduced new technology to streamline and sex up the mortgage application process, for us the real problem is helping people to save money on their mortgage when they are not looking and without them having to lift a finger.
“That’s what solves the real problem, which is consumer inertia – to require a customer to manually update their own information in the age of Open Banking is both antiquated and absurd.”