Fintel invests £1.5m in Worcester fintech business

Fintech business Mortgage Brain has secured a £1.5m investment from Fintel to fund development of its technology platform.

Mortgage Brain’s software is currently used by 15,000 intermediaries. The new agreement will see Mortgage Brain’s CRM, sourcing and submission software made available to Fintel’s network of advisers.

Fintel has taken a 5.8% stake in the Worcester-based business, and has made a separate agreement that sets out the basis for a potential future acquisition of the entire business.

For the year to March 2023, Mortgage Brain had revenues of £13.2m and reported an EBITDA loss of £1.96m.

Neil Stevens, joint chief executive of  Huddersfield-based Fintel, said: “Our new distribution agreement with Mortgage Brain will enable our members to access their leading mortgage sourcing and submission software as part of our integrated platform.

“Our investment provides a significant cash injection to accelerate Mortgage Brain’s product transformation, enhancing its solutions and providing even greater efficiency to its customers, including Fintel’s extensive membership base.”

Fintel has also announced the completion of its acquisition of reg-tech solution ifaDASH, in a deal worth up to £1.5m for a 70% stake.