18 February 2018
Visit www.avoka.com

Online mortgage auction launched in UK

23 January 2006  |  8892 views  |  0 keyboard

An online mortgage service has been launched in the UK which aims to reduce the cost of borrowing by pitching lenders against each other to compete for business.

The mortgagebundles.com Web site is described as an "eBay for mortgages".

The service bundles together borrowers with similar profiles. Lenders then bid on each group. The lender that offers the cheapest deal wins the auction, although individual borrowers within the 'bundle' may turn down the deal.

At launch, around 14 mortgage lenders will participate in the service - including Nationwide Buidling Society - representing approximately 50% of the UK's annual home loan lending.

After an auction, borrowers in a bundle are invited via e-mail to apply for a mortgage from the winning lender. If they decide to take up the offer, they then complete a full application form online that is sent electronically to the lender by mortgagebundles.com.

The site's model of 'bundling' consumers with similar risk and need profiles was designed by the company founders and is based on patent-pending technology implemented by software firm Arjuna Technologies. The company says this is the first time that this profiling approach has been used in retail financial services in the UK.

Robert Cole, technical director at mortgagebundles.com, says: "The current way consumers buy mortgages is time-consuming, antiquated and the market has long been crying out for innovative technology that puts the consumer in the driving seat.

"It has taken us just over a year to get the 'bundles' service fully operational and we are now confident that it will provide what the market needs right now; cheaper mortgage deals for consumers and increased business for lenders, all delivered conveniently and easily."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cahoot tests mortgage market

Cahoot tests mortgage market

07 October 2005  |  7792 views  |  0 comments
Nationwide implements mortgage tracking technology

Nationwide implements mortgage tracking technology

26 May 2005  |  6906 views  |  0 comments
Mortgage lenders cutting processing costs

Mortgage lenders cutting processing costs

14 October 2004  |  4407 views  |  0 comments
UK mortgage brokers migrating to the Web - TowerGroup

UK mortgage brokers migrating to the Web - TowerGroup

19 November 2003  |  5127 views  |  0 comments
BM Solutions launches one minute mortgage service

BM Solutions launches one minute mortgage service

10 October 2003  |  5775 views  |  0 comments
Europeans switch to Web for mortgages

Europeans switch to Web for mortgages

07 October 2003  |  5087 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit http://info.nice.comvisit www.nextgenbanking.co.ukvisit www.ebaday.com

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
10462 views comments | 16 tweets | 11 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8247 views comments | 15 tweets | 41 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
7732 views 10 comments | 21 tweets | 26 linkedin
hands typing furiouslyHow can Blockchain Help with AML KYC
7607 views 3 | 9 tweets | 4 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job