LONDON, April 12, 2016 /PRNewswire/ --
Habito, launched today, has taken aim at the £95 billion[i] mortgage broking market, one of the only pillars of the consumer finance sector yet to benefit from technological disruption.
Using unique proprietary technology, habito analyses every mortgage on the market across 100 lenders in seconds. It identifies the very best mortgage for each applicant, based on their individual circumstances, and enables them to complete their application online, from a phone or tablet, within around 30 minutes.
Backed by some of the most successful fintech entrepreneurs in Europe - including Transferwise CEO Taavet Hinrikus and Funding Circle CEO Samir Desai - habito is the world's only digital mortgage broker.
Having raised a £1.55 million seed funding round led by Mosaic Ventures, habito plans to revolutionise a market that has failed to keep pace with the needs of 21st century consumers.
With a mortgage market that's often opaque and confusing, it's no surprise that more than two-thirds of people seek advice from a broker. The average broker will look at fewer than 10% of the mortgages available and take 2-3 weeks to process an application. It's impossible for one person to look at every mortgage out there, so people often end-up with the wrong mortgage.
In fact, 1 in 4 British homeowners is currently spending over the odds due to this 'mortgage mismatch', paying lenders an average of around £4,000 more than they need to every year[ii].
Habito has created a way to eliminate this problem and save consumers up to £29bn annually.
Even after the right mortgage is found, habito will continually monitor the market and alert the customer if a better deal ever becomes available, helping them switch smoothly. People never need worry about their mortgage again. Directly authorised by the Financial Conduct Authority, habito is completely impartial and free to use.
With 7.6 million active mortgages in Britain, 69%[iii] of which are completed with the support of a mortgage broker, the market potential for the company is huge. Because the process is fully automated, the company is built on strong foundations to achieve significant scale quickly.
Daniel Hegarty, CEO and Founder of habito, said: "Technology has transformed our lives beyond recognition, so it's hard to believe applying for a mortgage today remains no different from the difficult and often protracted process of 10, 20 or even 30 years ago.
"It is an industry that has seen no meaningful innovation, yet technology can do so much to take the pain out of mortgages for consumers. It's not right that millions of people are paying over the odds on the wrong mortgage.
"It's time for technology to bring mortgages into the 21st century. Habito scours every mortgage from over 100 lenders in seconds and matches the best one for you. It is an easy, fast and transparent way to find and apply for the right mortgage seamlessly."
Taavet Hinrikus, co-founder and CEO of Transferwise, added: "Applying for a mortgage is stressful and time-consuming. Habito have built a great product that takes away that pain and helps consumers find the best product for them."
Notes to Editors:
Habito is using technology to bring the mortgage application process into the 21st century. Using habito, home buyers can for the first time be sure they're getting the best mortgage for them. We have developed a simple, honest and transparent way to help people find and apply for the best mortgage. No jargon, no fees and no misinformation.
Our technology allows us to access and analyse every mortgage from over 100 lenders in seconds. We'll find the best match for you and help you make your application online in about 30 minutes. You can apply on your phone or tablet, 24/7. No appointment necessary.
We're a group of designers, engineers, mathematicians and mortgage experts with a really big idea. We hold ourselves to highest standards and are committed to transforming the mortgage market.
Habito has raised £1.55m in seed funding, the round was led by Mosaic Ventures, with participation from angels including Taavet Hinrikus, Samir Desai, Yuri Milner, Tom Stafford and Paul Forster.
i. Bank of England statistics, monthly house purchase approvals (non-seasonally adjusted). Based on annual house purchase lending January - December 2015
ii. According to an analysis of SVR mortgage holders by HSBC, Nov 2015
iii. Council of Mortgage Lenders Regulated Mortgage Survey, July 2015