Monzo buys digital mortgage broker Habito

Monzo, a UK-based digital bank, has announced its first acquisition, purchasing the digital mortgage broker Habito. This strategic move aims to enhance Monzo's mortgage offerings and broaden its services beyond core digital banking, signifying a significant step in the bank's growth strategy. The acquisition of Habito, which employs approximately 100 people, will integrate end-to-end mortgage broking services directly into the Monzo app. Monzo, with over 14 million customers, already has a Homeownership feature used by over 450,000 users to manage their mortgage and home value. The deal’s financial details remain undisclosed, and the transaction is expected to finalize in the spring of 2026. This acquisition directly affects Monzo's customer base by providing a more integrated and user-friendly mortgage experience within their existing banking app. This move also highlights a broader trend of digital banks expanding into adjacent financial services. The integration reflects the high usage of mortgage brokers in the UK, with 87% of mortgage seekers utilizing such services. The move by Monzo showcases the ongoing evolution within the fintech sector and its potential to disrupt traditional financial processes. As Monzo integrates Habito's services, it will be interesting to observe how the platform enhances the customer experience and positions itself in the competitive UK mortgage market.