Fellow Funders joins the mortgage market

Acquiring our dream home is one of the many aspirations we all share. We all aspire to live in the perfect home. However, the inherent characteristics of real estate force most of us to resort to bank loans (mortgages)

.

When we turn to one of these loans, it is essential to understand what is being mortgaged: the real estate and not our future. In other words, pay attention to the conditions offered by the bank and be sure to meet our obligations. On the contrary, our dream threatens to turn into a nightmare.

Favorable trend in the mortgage sector

Regardless of the implicit risks involved in taking out a mortgage, the current market trend is encouraging. According to figures from the Bank of Spain, the average interest rate (at which Spanish banks granted mortgage loans) reached an all-time low of 1.45% in August, four times lower than the more than 6% in October 2008. The main reasons are the cost of money and the bank’s engagement in a war to attract new customers. A “fight” that benefits loan applicants who find themselves with better and better conditions.

Despite it, we should not neglect the selection of a mortgage. It is advisable to go to a service or professional for advice and to be able to compare the different offers available in the market. The truth is that these types of services do not have very tempting offers and present several problems, such as the lack of accuracy of mortgage comparators and the high price of such advice. This independent and impartial advice service costs between 3 and 5% of the mortgage value.

HIPOO, the free comparator

Fellow Funders wants to tell you about HIPOO, a company founded in 2017 to solve the problems we’ve been telling you. HIPOO is a fintech. It has developed a mortgage broker so that users can compare the different offers available on the market like price (interest rate) and other conditions completely free of charge. In this way, the only cost to be assumed by the client is that of the mortgage itself.

How is it possible to provide this service at zero cost? HIPOO’s business model places the monetization base in the other part of the transaction: the offer, i.e., the banks. The fintech charges banks a commission of between 0.5 and 1% once the transaction is closed.

Accordingly, the customers win, and the banks win since the credit institutions have to face acquisition costs higher than 1% when they resort to other customer acquisition methods. No wonder HIPOO collaborates with most of the most important Spanish banks, including Santander, Unicaja, and Sabadell.

Real-time simulation

HIPOO offers an accurate and complete service to its clients, unlike other platforms. The company has “decoded” the entire mortgage offer so that users can not only see personalized interest rates but also configure their mortgage, choosing add-ons and seeing in real-time a simulation of their monthly payments.

HIPOO applies the French mortgage amortization system, as it is the most widespread and is characterized by perpetual installments that imply a higher interest payment at the beginning of the installments and lower at the end. The company plans to start its international expansion in our neighboring country in 2022. In any case, Hipoo is already in the big cities of our country: Madrid, Barcelona, Seville, Valencia, and Bilbao.

Invest in HIPOO with Fellow Funders

At Fellow Funders, we have been betting on the real estate sector for a few months, when we started with our financing rounds of House Flipping projects. However, we know that there are many more actors necessary for the functioning of this market. One of them is HIPOO, whose service is essential to search for mortgages and make sure to make the best decision on one of the most considerable costs for a family.

Hipoo approached Fellow Funders a few weeks ago to get funds through our crowd investment platform. After analyzing their metrics, it was clear that this round stands as a crucial opportunity to diversify any investment portfolio. Thanks to HIPOO’s mortgages, everybody wins, either applicants or banks. So, we want our investors to join this winning team!. Do you want to join HIPOO in its expansion and internationalization process? You can do it now from our platform!

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top