At the beginning of March, Moneybox, the saving and investing app, announced the beta launch of the integrated Moneybox Mortgage Advice a service, offering people a simple way to find the mortgage that’s right for them.
Buying a home is one of the biggest financial commitments people can make, but many are in the dark about the complex process that follows as building up a deposit is only the first step. In a survey of more than 3000 Moneybox customers, nearly all of those looking to buy a home were planning to do this with a mortgage (99.4%). However, over half (54.3%) of them did not know what type of mortgage they should be applying for. Unsurprisingly, a majority (54%) said that finding a mortgage product with a low-interest rate was their priority. Almost a third (27.7%) said that receiving qualified advice was the most important factor to them.
Ben Stanway, co-founder of Moneybox said: “We are on a mission to help everyone save and invest for their future, and for many, that future includes homeownership.
“We are already helping hundreds of thousands of people save for their first homes, but we’re aware that the home-buying journey goes far beyond saving up for a deposit. Finding the right mortgage can be a stressful, time-consuming and expensive process, and we want to change that. We want to give people the tools and information they need to save for a deposit, and then the qualified advice to help them make an informed decision on what the right mortgage is for them. By offering customers everything they need in one user-friendly service, we want to bring the joy back to home-buying.”
Moneybox Mortgage Advice, offered by “Moneybox Mortgages”, sits in the app and helps customers generate a “Mortgage In Principle” all through their mobile phone. A team of mortgage advisers offers free advice over the phone or via in-app chat to help customers find the mortgage that’s best suited for them and their individual needs. As part of its commitment to focusing on the best outcome for customers, Moneybox is paying advisers a competitive, set salary, rather than incentivising them through commission for selling products. Moneybox is working with Mortgage Advice Bureau to offer a broad range of suitable mortgage options for customers. The service will be available to first time buyers, next time buyers and those looking to remortgage, and customers can track their progress in the app throughout the process.
The service will initially be available to a small pool of existing customers in beta, where Moneybox will work closely with its community to develop its service before rolling it out to the wider community over the next few months.
Sania Kudaibergen, Head of Mortgages at Moneybox added: “Buying a home should be one of the most exciting moments in people’s lives, but too often the process is fraught with worry and confusion, and people can end up with mortgages that aren’t right for them. We want to streamline the mortgage application process, and have built a team of experienced advisers who pride themselves on offering free and qualified advice whenever you need it in your savings journey. To help customers find the mortgage that fits their individual needs we’re excited to be working with the UK’s leading mortgage intermediary brand Mortgage Advice Bureau.“
As part of the beta launch, Moneybox is also rolling out a series of home-buying related content, including a first time buyer academy, to provide users with the information they need about the process of saving for, and buying a home.
Peter Brodnicki, CEO of Mortgage Advice Bureau commented: “We’re delighted to be working with Moneybox, which is a very well-respected customer-first brand in the personal finance space. Whilst helping prospective first time buyers save for their deposit, their app and digital tools support savers to become mortgage and purchase ready. Moneybox customers will now gain access to experienced advisers who will help them secure a mortgage that best meets their needs from the many 1,000’s of options available. Investing in future first time buyers in this way is hugely important, as saving for the deposit is only one of many considerations when planning your first purchase.”