Top 3 FinTechs of the real-estate sector in the U.K. and Europe

By Joy Dumasia

FinTech (financial technology) is a swiftly growing global field that has naturally entered into a significant crossover with the property industry. It continues to revolutionize the way we invest and save. As this phenomenon progresses, startups and new young companies have popped up all over Europe to take advantage of the particularly lucrative and exciting opportunities it presents.

FinTech is making the lives of homeowners more straightforward by connecting them to suitable lenders who can fund their purchases when they need it. FinTech firms are making home loan processes straightforward with cutting-edge technologies, thus benefiting the real estate sector and the consumers.

Since real estate deals involve a lot of money, anybody investing in that would be spending a fortune. As a result, the investor needs to ensure that the deal is safe and transparent. By developing tamper-proof databases and processes and removing the need for an agent, FinTechs have made the payment process more straightforward and hassle-free for consumers.

The below 3 listed FinTech companies have played a significant role in the sector of real-estate:

• LendInvest

The asset management platform providing bridging loans, development finance, and buy-to-let mortgages for intermediaries, landlords and developers across the UK.

LendInvest is a mortgage lender that is not connected to any particular bank or building society. It provides an intuitive user experience and offers mortgages, bridging loans, and further finance options to landlords, developers, and other property professionals. With an “international capital base” and a highly flexible, tech-based approach to lending and borrowing, the company has already lent more than £3 billion.

IBS Intelligence recently reported that LendInvest and Credit Kudos have teamed up to offer brokers and customers a secure device and enable the former to make informed leading decisions with Open banking insights. The company has selected Credit Kudos to speed up its time-to-decision with a smoother customer journey and enhance affordability and credit risk assessments using Open Banking-enabled risk insights.

• Molo Finance

Molo is the UK’s fully digital mortgage lender – the first to offer mortgages underwritten entirely online. Molo uses the power of technology to make real-time lending decisions via a digital, seamless and transparent journey to give customers quick answers and a better overall experience.

FinTech specialists in buy-to-let mortgage lending, Molo allows applicants to borrow up to 80% to secure a property swiftly, safely, and more efficiently than they might via other, more traditional routes. Molo refers to itself as a “digital mortgage lender”, with every part of the process completed safely and transparently online.

Using its tech-enabled platform allows users to get a mortgage in the shortest period without submitting paper forms, making appointments, and avoiding manual reviews, traditional banks, and old-fashioned mortgage lenders.

Molo, the UK-based digital mortgage lender, recently announced that it had raised a further £266 million in debt and equity funding, completing its Series A equity funding round. The equity round was led by Yabeo, an international Venture Capital firm and supported by existing shareholders, Andenes Investments, GPS Ventures and others. SpecFin Capital advised Molo. The capital raise comes after the first tranche of £10 million for the Series A round that closed in January 2020.

• Fronted 

Another organization focused on rental deposits. Fronted allows tenants to gradually pay off their upfront costs – in “bite-size chunks”, spreading them out over some time and thereby reducing any concentrated impact on the finances of individuals.

This takes the pressure off renters house-hunting in locations where they may be expected to pay prohibitively large amounts to a landlord – something that might otherwise significantly reduce the number of opportunities they would have to find a safe and suitable place to live.

Recently, IBS Intelligence reported that UK-based technology firm Yobota had announced the launch of rental deposit FinTech Fronted on its core banking platform. Fronted aims to help renters afford deposits when signing new tenancy agreements. The startup does this by offering a fixed 12.5% loan to cover the deposit, with renters able to spread the cost across up to 12 months.

In conclusion, FinTech is a consumer-centric industry that can disrupt the market through its innovation in the lending space. Real estate is considered an ever-developing industry, and with the FinTech collaboration, it is booming even more. CAS, the whole lending process, has now gone digital; it has attracted many tech-savvy homebuyers who can easily avail funds as per their convenience and with minimal documentation. Thus, giving consumers a hassle-free and seamless experience while investing in their dream homes.

ALSO, READ: The Future of Digital Banking Report 2021