A Cardiff-based mortgage adviser has launched an online comparison site to give mortgage borrowers stuck on their standard variable rate the opportunity to switch deals and make savings on their monthly payments.
Lee Flavin, alongside business partners Jason Stallard and Lyanna Tsakiris, launched RateSwitch to give complacent or uncertain borrowers the ability to move deals through their current lender.
RateSwitch uses a three-step process requiring visitors to select their current lender, mortgage balance and estimated property value, to demonstrate the best rates available in a format similar to comparison sites like Go Compare, free of charge. RateSwitch’s mortgage advisers can then provide borrowers with further advice and guide the customer through the process.
Flavin said he hoped the service would raise awareness of the cost of Standard Variable Rates (SVR) that many homeowners were stuck on, while also providing a solution to the problem.
‘For too long, too many have been paying out money that they simply don’t have to. RateSwitch has the power to disrupt this pattern by helping consumers who have been stuck on SVR to finally break free,’ he said.
‘RateSwitch solves a sizeable problem by introducing a whole new dynamic. We’re very excited to join the current wave of start-ups striving to simplify complex processes within the mortgage industry, and believe that our existence will go a long way towards helping homeowners save money on their mortgage quickly, with minimal hassle.’
RateSwitch was supported by Wales’ first tech accelerator the Ideas Fund, which helped launch the service after fund administrators at TechHub Swansea spotted its potential. The firm secured investment from Finance Wales prior to launching and now has a post-investment valuation of £1m.
Finance Wales’ Sarah Smith, portfolio investment executive for the technology seed fund, said: ‘RateSwitch has great potential with a truly innovative concept.’
‘We were delighted to provide the company with the growth capital it needed to establish a commercially viable online platform – which could benefit thousands of homeowners across the UK.’
By Hannah Uttley for Mortgage Solutions (8th February 2017)