NEW YORK–(BUSINESS WIRE)–Better HoldCo, Inc. (“Better”), one of the fastest-growing digital homeownership platforms in the US, today announced the planned acquisition of UK-based company Trussle. The acquisition will help Better enter the GBP 1.5 trillion mortgage market in the UK, where it will repeat its success in the US.
In the UK, the mortgage process takes months to complete, with consumers paying thousands of points in fees and losing hours on unnecessary friction, all of which has led many Britons to give up owning their own homes and the national homeownership rate fell. from 73% to 65% over the past 10 years.
“Better eliminates the high financing costs, huge transactional frictions, tyranny and mind-numbing bureaucracy that come with getting a mortgage and buying a home in the UK through a high street bank,” said Vishal Garg, founder and CEO of Better. “We researched the UK market and were surprised to see how we could make it so much better for first time home buyers and financers. We found a kindred spirit in Trussle’s team, who have developed a platform for us to work together to help every Briton own their own home. Making home ownership affordable and accessible to all customers is a core tenet of a well-functioning credit system and we are here to help Trussle grow and make it even better.”
Trussle is a UK-based digital mortgage and insurance broker, founded in 2015, providing independent, high-quality advice to clients looking to buy a home or transfer an existing mortgage. The company assesses client suitability, provides advice on mortgage and protection products and works with over 90 lenders to secure mortgages for UK homeowners. Since its inception, Trussle has secured more than GBP 2.7 billion in mortgage approvals for UK consumers, of which GBP 1.1 billion in the past 12 months.
“Better and Trussle were both founded on the understanding that consumers increasingly prefer online services to shop and transact for large purchases of lives. It’s been 27 years since the World Wide Web was launched and most consumer industries have now embraced it, but the UK mortgage market is still characterized by analogous systems and processes. This market should not force consumers to apply for a mortgage 5 months before the Stamp Duty holiday ends.” said Ian Larkin, CEO of Trussle. “We are very excited to be part of Better, and we are confident that Trussle’s future looks brighter than ever as part of a large and growing global organization that shares our commitment to making home ownership easier, fairer and make it more accessible to everyone.”
Trussle will accelerate Better’s entry into the UK market with an experienced management team, local knowledge and fundamental UK mortgage technology. Trussle captures critical data on customer demand, lender pricing, and risk eligibility matrices that will yield valuable insights when analyzed using Better’s technology. Bringing this data and capabilities together gives both organizations unique strengths to identify underserved market segments and evaluate risk.
Better will improve Trussle’s revenue profile by partnering with Trussle to develop a pipeline of B2B relationships with brokerages, real estate developers and financial services firms, invest in customer acquisition and increase the number of herds on product offerings, including insurance and title services ( known as ” in the United Kingdom).
The terms of the transaction are not being disclosed and are subject to customary regulatory approvals in the United States and the United Kingdom. Ian Larkin and the existing management team will continue to lead Trussle after the acquisition.
Founded in 2016, Better is a digital homeownership company whose services include mortgages, real estate, title deeds and homeowners insurance. From its inception in 2016 through 2020, Better has funded $30.9 billion in home loans and provided more than $7 billion in cumulative coverage through Better Cover and Better Settlement Services, Better’s insurance divisions. Better has raised more than $400 million in equity capital since its inception. The company was ranked #15 on CNBC’s 2020 Disruptor 50 list and is also on the Forbes FinTech 50 for 2020. For more information, follow @betterdotcom.
Trussle, the UK’s first digital mortgage broker, was founded in 2015 with the mission of making more home ownership dreams come true. For many, the process of buying and financing a home can be complex and disjointed, often leading to confusion and frustration among home buyers. Trussle’s smart technology combined with human expertise enables Trussle to make faster and more informed decisions, giving customers more certainty about closing the right deal. Trussle’s relentless focus on customer service has made us one of the top-rated online mortgage brokers on Trustpilot (4.8/5 based on 4,200+ reviews).