US property portal Zillow has entered the mortgage market, allowing homebuyers to not only find a property but lending them the money to buy it.
Zillow has introduced this service following the purchase of brokerage Mortgage Lenders of America (MLOA) at the end of last year. It is reported that Zillow expects to provide around 3,000 mortgages monthly initially.
Zillow co-founder and chief executive Rich Barton is reported to have told the US media: “My eyes are wide as I look up in the sky and see the moon and I want to go. To me, this is one of the more exciting opportunities I’ve seen in my business career and it’s why I’m recommitting in all kinds of ways.”
Many will wonder, of course, if and when something similar will happen in the UK. The UK property, finance and legal system is very different – but it would certainly make a lot of sense for consumers, as well as being a massive shake up for the industry. The issue probably is if and when any of the property portals could raise the money to do it.