MortgageGym closes £3.8m funding round
Written by Peter Walker
MortgageGym has announced the successful completion of a funding round of £3.8 million from investors, including LSL Property Services, which is the parent company of the UK’s second largest mortgage network.
The GoCompare Group has also increased its shareholding as part of this investment round.
Following the LSL investment, MortgageGym is valued at £12 million despite only having fully launched its proposition earlier this year. The funding will enable ongoing investment in the company’s development of mortgage robo-advice and artificial intelligence services.
MortgageGym offers a free 60-second mortgage-matcher and mortgage advice, which is enhanced through its full integration with Experian credit files and mortgage lenders’ live scorecards.
The investment round included the obtaining of Financial Conduct Authority approval.
This round follows a seed funding round of £2.5 million completed in 2017, and almost a year of integration with GoCompare’s services. It has also entered into a strategic partnership agreement with LSL mortgage broker networks – which, at the end of 2017, had some 2,298 mortgage advisers and arranged £21 billion in lending in 2017.
The startup has promoted chief commercial officer Jeremy Moll to become managing director. He has over 28 years of experience in the UK mortgage and insurance industries and was part of the senior team that created CompareTheMarket.com and latterly BeagleStreet.com.
John Ingram, co-founder of MortgageGym, said the funding round, strategic partnerships and a unique proposition puts the company in a strong position.
“Other digital mortgage platforms are constrained by their aim to organically grow their customer-base and build broker support at the same time, while our compelling fusion of ‘bricks and clicks’ will allow us to rapidly alleviate homebuyers of the uncertainty and stress of mortgage applications on a national scale,” he explained.
“We have carefully chosen investors that not only bring funds, but invaluable, symbiotic business models and expertise. As a result, we do not need to invest in costly customer acquisition or building a broker-base,” he added.