The Edinburgh-based company, which launches this autumn, intends to shake up the mortgage industry with an online service that will enable people to conduct a comprehensive search and find the best mortgage to meet their individual needs.
The service will be free, easy to use and is based on data provided by Moneyfacts. It will enable people to simplify the process of choosing a mortgage by identifying the best ones for them based on a range of criteria, including cost and product features such as the ability to make over-payments.
A number of lenders have already agreed to work with mform and will enable users of the service to link directly to their mortgage application departments. With its online business model, and the comprehensiveness of the search process, mform will offer attractive leads to lenders.
mform expects to break even within 12 months of launch. Artemis will have a significant minority shareholding in the company, with the majority owned by the five founders of the company.
Eamonn Rice, chief executive of mform, said: “With well over 6,000 mortgages from more than 100 lenders to choose from many consumers find the process of choosing a mortgage product to be complicated and stressful. It does not need to be and we aim to make it simple, fast and efficient.
“The cost of servicing a mortgage has been rising steadily. Indeed, between 2002/03 and 2004/05, we estimate that it increased by 26 per cent. With rising property prices and the recent increase in the Bank of England base rate and a further one anticipated, this continues to grow.
“We are targeting a significant share of the residential mortgage market. We are delighted that Artemis is backing us because it has a great reputation for picking winners.”
