At the recent Future Property Tech conference, Trussle founder Ishaan Malhi announced to an audience that his mortgage advisory product would be fully live on Zoopla in a few months’ time.
He intimated that they would ‘exclusively’ be the only mortgage introduction product on Zoopla with the ability to “display the best mortgages for each consumer from property listings”.
Trussle claim to be the UK’s first online-only mortgage broker, and made the news earlier this year by securing an investment from Zoopla.
Speaking to Malhi, we learned that Trussle aim to “generate a Mortgage in Principle for aspiring home buyers in under five minutes”.
Malhi was keen to put emphasis on “helping consumers strengthen their offer and walk into viewings with the knowledge and confidence of how much they could afford.
“Trussle pre-qualifies buyers to generate higher quality leads for agents, so there’ll be no more faffing around with those that can’t afford the property.”
He described the offering as an “integration” with Zoopla and a “win-win for buyers and estate agents” that was originally announced at the time of the Zoopla investment in Trussle.
Malhi ended our call saying, “Zoopla make it straightforward to find a home. We’re finally extending this to buying a home”.
The Zoopla investment in Trussle formed part of a broader expansion of Zoopla beyond its core property portal.
This expansion started with the acquisition of uSwitch last year and culminated in the purchase of Property Software Group which provides Vebra, CFPWinMan and Jupix software packages to estate agencies across the UK.
The strategic partnership with mortgage broker Trussle raises the question that Zoopla could be capturing mortgage enquiries before a Zoopla’s customer agent’s in-house mortgage broker.
Ian Wilson of Martin & Co, whose franchisees are Zoopla customers said, “it would not be beneficial to our commercial interests but [Zoopla competing with us on mortgage advice is] not a show stopper either.
“I think other property business advertisers on Zoopla who do charge fees for their FS (financial services) service might be less sanguine than us.”
Wilson elaborated that they would “not be happy to see financial services offered in an advertising forum where we display our properties if the financial service provider is charging fees”.
He pointed the finger at Countrywide and Connells saying: “We disagree with our corporate competitors who offer the public a limited range of mortgage products and charge several hundreds of pounds in fees.”
On their own mortgage offering, Wilson said they have a “tie-in with London & Country” and their model is “completely fee-free and whole of market”.
We asked both Countrywide and Connells for a comment. Connells quickly responded saying they didn’t wish to say anything and we didn’t receive any response at all from Countrywide.
An industry insider who wished to remain unnamed suggested that “maybe the corporates need a rethink if their profit lines are being squeezed by an aggressively expansive portal”.
In trying to get a quote from independent agents every one we spoke to had moved away from Zoopla to join the “movement of independent” agents with OnTheMarket, as one agent put it.
We also approach Iain White, formerly of Romans and who now serves as an adviser to estate agents, to get a quote from his agency clients.
White said that when the story “is in the public domain, I can imagine many agents will have something to say (about the potential conflict of interest). But until it is, I wouldn’t advise my clients to comment”.
Eye approached Lawrence Hall of Zoopla for a comment several times over the last week.
We asked Zoopla whether this will sit comfortably with the corporates who have their own mortgage businesses, and with independent agents who have a revenue stream from brokers such as the Mortgage Advice Bureau.
The recent launch of a ‘monthly running costs’ widget on every Zoopla property listing was highlighted in last week’s financial results and shown to be effective in boosting energy switching revenue for Zoopla subsidiary uSwitch.
The running costs widget also currently offers a mortgage referral in partnership with NatWest.
Yet more reason to leave this wolf in sheep’s clothing.
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I worry that the mainstream industry comments, or the ‘deafening silence’ of no comment is all about profit.
In any industry, the first rule should be about putting the customers first. Put your self interest (profit) before the consumer and you’re dead in the long term.
Ian Wilson’s comments are spot on and we’d never contemplate recommending a mortgage product that charges fees when brokers are out there offering across the market solutions, fee free.
The industry is changing rapidly. Old models are being swept aside.
Big corporates are oil tankers unable to turn around quick enough to keep pace.
Ask Blockbuster if they’re concerned about the threat from on demand TV – You’ll get no comment as well.
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What is wrong with a mortgage broker charging a fee?
They should! – The amount of work they do in finding the right product and then seeing it through to offer. Along with other advice regarding life cover etc. Proc fees are less than a £1000 in most cases, charging between £300 – £500 is just making it worth while. A lot of time and effort goes into placing a mortgage.
The issue here is Zoopla selling to our customers we are providing for them!
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no need to worry Smile Please. The answer is simple…. come off Zoopla.
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All ready have, just hope others do the same 🙂
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‘…we’d never contemplate recommending a mortgage product that charges fees when brokers are out there offering across the market solutions, fee free.’
Mr Ackroyd – surely you are not suggesting, or allowing yourself to believe for one nanosecond, that the brokers you are referring to are working on a totally pro bono basis?
I have yet to see the words ‘(insert name here) Financial Solutions is a Limited Liability Partnership and is a Registered Charity No. XXXXXXXX’ appear on the website or documentation of any broker – nor do I expect to.
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Brokers get proc fees from the mortgage company.
Some estate agents use brokers who charge the customer on top of the proc fee for the same mortgage product.
No broker is a charity. Some brokers charge for the same work.
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Our brokers do that and we fully endorse it.
The amount of paperwork and time taken to place a mortgage they deserve the fee and the proc fee.
Dealing direct with a lender you save the fee but the service is dismal.
Example: HSBC have the best rates normally, online, on the telephone they do a quick fact find and say no problem you can have X rate. You then need to wait usually in excess of a week to see the branch based adviser. The branch based adviser will spend 2-3 hours looking at the circumstances whilst also trying to sell you other products from the bank which are not necessarily needed by you such as credit cards. 7/10 times they will then not offer your the rate or product you were initially offered. you are either rejected altogether or offered a worse product. But as you have sat through a 3 hour examination by the lender you sign up to a rate that could be bettered by an independent broker, however you do not want to go through another 3 hours.
Now also couple this with the fact banks have a very expensive life assurance or critical illness product compared to say Sun Alliance or Bright Grey the buyer is penalized further.
Now also put into the mix that if there is a problem with the application the branch based adviser will just say “Its with head office”
So suddenly paying £300 to find a truly independent adviser who has access to the entire market place, can get cheaper deals and ones more suited to the needs of a buyer and not sell them credit cards and also chase through problem case, coupled with an appointment next day or the buyer can pop in and see any time (Unlike a bank having to make an appointment) the £300 seems a bargain.
But of course there are always silly people stepping over pounds to pick up pence…..
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‘Brokers get proc fees from the mortgage company.’
Correct. So who, in your opinion, pays for that?
But here’s the important bit. How is a client to know whether the broker is getting the best deal for them, or the best deal for them?
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I agree – but that applies to brokers who do and don’t charge fees equally. Both get proc fees.
You need one who is independant and offers across the market products.
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I tried phoning blockbusters but the number doesn’t work anymore!??!
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I think this is a huge mistake for Zoopla and shows exactly what many have been predicting for years; Zoopla is in competition for revenue from the very buyers, that the inventory estate agents place with them, draw to their site.
As for Ian Wilson’s comments about brokers “not charging fees” well thats naivety in the extreme. Mortgage advisors are not the CAB, they are sales people, who if they do not balance their fees over a sensible charge for advice, are just as likely to push customers to better proc fee products or unnecessary insurance.
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RealAgent – Just when i think the industry has gone barmy and we should turn off the lights and go home as there are no good estate agent / business owners left – You give me hope some still exist – PLEASE KEEP POSTING!
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Likewise SP!
I have to say I will be genuinely surprised if Countrywide or Connels don’t have an issue with this move by Zoopla. Both have historically been very good at generating mortgage referrals, albeit perhaps a tad over zelously at times.
One thing both firms have identified however is the future profitability of their business relies heavily on the idea of a “blended” fee and for us smaller agents its also the key to riding the market storms. With no disrespect to Ian Wilson, but whenever a firm says they are not bothered about a competitor advertising in their shop window, it normally indicates they don’t sell much of that product themselves!
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I think its shows the corporate have far less say in Zoopla than they do in RM – Lets be honest, if RM could do this they would do this.
In respect to Martin & Co its an interesting one, they have set up a good network of franchised offices in the main dealing with lettings are are well placed to offer support in this area. A couple of years back they identified that the lettings market was getting tougher as every agent was now doing sales and lettings. So they offered all letting agents a ‘Free’ franchise to sell property not just offer rentals.
All good so far, problem is from what i understand Martin & Co franchises in the main are still very lettings orientated (not all) and they really have no firm hold on the lucrative and service enhancing third party products such as conveyancing and mortgages.
If Martin & co continue to grow and become more engrossed in sales i think their attitude will change. By the sound to me, higher management could do with a change so they are more inline to where they should be focusing.
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SP – as a M&Co franchisee myself, your comments are spot on. Interesting that the article mentions that Martin & Co franchisees are Zoopla customers themselves. This is only partly true – we are free to choose between ZPG and OTM with about 1/3 having made the switch to OTM.
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Wake up and smell the coffee !
Zoopla are being very aggressive and clearly putting their own interests before those of their clients.
I have worked in Financial Services within Estate Agency nearly all of my working life and the income stream generated from mortgages is very important, particularly to the larger corporate agnets. Although we no longer provide financial services, I can see many of the corporate agents will soon be taking Zoopla to task.
Why are so many independent agents out their not looking forward to protect their business ? Get on board and support OTM !
I am not sure how other agents are performing, but nearly half of our leads generated are now coming from OTM and cost per lead is far less than Rightmove.
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All they need now is an army of local listing minions and they’ve pieced together a full house passive intermediary system, well done!
A Whitbread articulated lorry ploughing down a country following a Sat Nav and not realising they just missed the last chance to turn around or back up, funny!
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I wonder where they could get hold of a load listing reps. Wouldn’t it be convenient if the city out of the blue sticks the knife in a big data competitor who’ is after the same set of verticals and the share price suddenly plummets.
You couldn’t make it up, could you?
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I think that will come Robert. First it’s mortgages, then conveyancing, then once they amassed a little more of a war chest and can afford to lose a chunk of the contributor agents income, it will be private listings.
I would almost put money on the fact that its been muted around the boardroom….” We’ve seen it in Australia, why not here? “
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There is already enough cash, enough confidence and enough data to execute the plan right now but there is an issue of legacy. There is a change management issue that either someone hasn’t recognised or someone doesn’t know how to deal with or more likely both.
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I agree but think its more a case of, You do not kill the goose that lays the golden eggs (until it stops laying).
At the moment they are creaming off agents and with very little effort, money for old rope!
When the agents do dry up, as you have pointed out everything is in place. – Probably no more than 3 years off.
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The goose was already casualty, it’s been stuffed and nailed to the perch.
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More like a battery hen 😉
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It seems to me that the long term play here involves Countrywide. They have 1500 branches and very little in the way of an integrated tech strategy. As corp shareholders in Zoopla they can sit on the sidelines whilst Zoopla use their customer base to test all of these integrations.
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Hello estate agent chums,
Good Old Zoolpa at it again!!!
so they dilute our revenue streams,
they up our fees yearly
Most high street agents will look at increasing fees if they cannot generate other revenue
then online looks like a better prospect for those uninformed sellers
and finally the sellers pay more to sell their house.
Thanks Zoopla!!!! This is a lose-lose situation for a buyer
luckily I do personally do not rely in any way on referral income, if I did this would pretty much be the straw that broke the camels back
It seems that the only EA’s that Z doesn’t compete with are ind agents like me. I sell houses and I offer no referrals (although I do recommend a very good local conveyancer, solicitor etc.)
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Afternoon Clarkuk
Unless of course either Z or RM or both use this juicy data to fuel any confidential hybrid data share agreements.
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Me thinks someone is telling porkies eh Mr Malhi?!
Zoopla seem to have rather a lot of Mortgage adverts for different companies on site, and part of the running costs. Exclusively, not Zoopla’s style. Also with Countrywide etc as share holders, I just can’t see it.
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So why wouldn’t Zoopla have said that when asked to comment?
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That doesn’t mean it is completely true. Perhaps they have better things to do? I’d like to think so.
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Darn, pressed the dislike button by mistake and can’t undo it. :-s
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