Challenger bank Monzo has announced its plan to acquire digital mortgage brokerage Habito, to offer its customers an end-to-end experience.
The transaction is expected to complete early next year, and Monzo said it would make getting a mortgage simpler and more seamless for its users.
In 2023, Monzo launched its Homeownership feature to allow users to connect their mortgage and track their balance, as well as the equity and value in their homes. Over 450,000 people use the feature.
At the end of 2024, it partnered with Better.co.uk to offer mortgage broking services to customers who were remortgaging.
Earlier this month, it appointed Andrei Lebed, former CEO and co-founder of artificial intelligence (AI)-based broker Koodoo, as its head of homeownership.
The bank said this was its first merger and acquisition transaction, and the deal made it the first UK bank to offer a fully end-to-end mortgage broking experience.
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Monzo has 14 million customers and, in its full-year results for 2025, reported a 48% rise in revenue to £1.2bn and a profit before tax of £113.9m, up from £13.9m previously.
Kunal Malani, chief banking officer at Monzo, said: “Monzo has transformed money management for millions and millions of customers – yet we know that mortgages still remain a complex, cumbersome pain point, and one we are looking to solve. This is a huge step in our mission to make money work for everyone, and we’re excited to bring Monzo’s simplicity and transparency to one of life’s biggest financial moments.”
Ying Tan, CEO of Habito, added: “At Habito, we’ve always believed mortgages should be easier, fairer, and simpler for everyone. I’m incredibly proud of what our team has built, and I couldn’t be more excited for this next chapter with Monzo.
“Together, we’ll transform what the mortgage experience feels like – effortless, empowering, and truly built around people.”
Financial terms of the transaction are not disclosed. The deal is expected to close in spring 2026, subject to regulatory and other customary approvals.