‘Game-changing’ online comparison service set to shake up UK mortgage market valued at £1million following pre-launch investor support
A unique online mortgage comparison service launched to help
millions of homeowners across the UK reduce their monthly payments
has been valued at £1million following significant pre-launch
RateSwitch offers homeowners the chance to regain control of
existing mortgage costs with minimal hassle by finding competitive
loyalty deals from the UK’s leading lenders online, completely free
Following extensive development activity, the platform is now
live and as a business valued at £1million after significant
pre-launch investor attention culminated in Finance Wales providing
an undisclosed sum in a deal facilitated by Capital Law.
Founded by experienced Cardiff-based Mortgage Adviser Lee
Flavin, alongside business partners Jason Stallard and Lyanna
Tsakiris, Rateswitch is the first of its kind for the UK mortgage
industry in breaking down the best loyalty rates available from
your current lender in a similar format to comparison sites like Go
Compare and those operating in other sectors.
An estimated 40% of all residential borrowers repay their mortgages
on their lender’s Standard Variable Rate (SVR), which is the
uncompetitive default rate to which most introductory fixed and
tracker deals automatically revert.
Any notable change in credit status, earnings or employment type
(full-time to part-time, or employed to self-employed, for example)
since originally taking out a mortgage can easily affect an
individual’s eligibility to remortgage from one lender to another.
Determined by credit scoring and a thorough assessment of income
and outgoings, not everyone can simply switch lenders to save
money, with many ending up stranded on their current lender’s SVR
as a result.
RateSwitch provides instant access to better rates without
having to change lenders, as most typically allow their existing
customers to switch to improved loyalty rates without the
intervention of a credit check or underwriting assessment.
Without registration, and by simply selecting a current lender,
mortgage balance and estimated property value, visitors can access
loyalty rates accurately sourced by RateSwitch technology within
seconds from the UK’s leading lenders. RateSwitch’s experienced
Mortgage Advisers then calculate how much the individual stands to
save and where applicable get the rate switch process underway.
Also supported in its development by Wales’ first ever tech
accelerator, named the ‘Ideas Fund’, RateSwitch was officially
launched after fund administrators at TechHub Swansea spotted the
potential the concept had to disrupt the entire UK mortgage market
as it stands today.
Coinciding with a new FCA study looking into whether the
mortgage sector can be improved to benefit consumers - particularly
around the use of digital channels to deliver information or advice
– the launch of Rateswitch will also help address concerns around
whether tools currently available help consumers make effective
Paul Harwood, co-founder of TechHub Swansea, said: “The
potential RateSwitch has to turn the way homeowners view the
mortgage market as a whole upside down cannot and should not be
underestimated. 2016 was a year of exceptional innovation within
the mortgage industry through ongoing advances in automation and
As an online service offering unparalleled levels of control to
what is, for the majority, the largest monthly outgoing any of us
have, RateSwitch has the power to completely revolutionise the way
consumers not only access, but influence the market as we currently
Sarah Smith, Portfolio Investment Executive for the Technology Seed
Fund at Finance Wales, 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
Lee, CEO at RateSwitch, said: “It’s been a long-held mission of
mine to not only raise greater awareness of the unnecessary costs
SVRs bring, but to provide homeowners with a tangible solution to
the problem, so we’re absolutely delighted to be partnering with
Finance Wales on this.
“We’re very excited to join the current wave of start-ups
striving to simplify complex processes within the mortgage industry
and believe our existence will go a long way towards helping
homeowners save money on their mortgage quickly, and with minimal