Monzo has announced plans to acquire Habito, the UK’s leading digital mortgage broker, bringing fully digital, end-to-end mortgage broking directly into the Monzo app and further simplifying the mortgage experience for customers.

The acquisition will make Monzo the first UK bank to offer a fully integrated mortgage broking journey within its app, combining expert advice with a seamless digital experience. Completion is expected early next year, subject to regulatory approval.

Volution first invested in Habito in March 2022, attracted by the company’s innovative technology, strong growth and clear potential to disrupt a complex and underserved market.

James Codling, Managing Partner at Volution, said:

“This transaction represents a successful strategic acquisition by one of the UK’s leading digital banks and marks the eighth exit event from our 2020 Fund. Congratulations to Ying and the team — Monzo is a natural home for the business, and this transaction reflects the strength of Habito’s platform and market position.”

Ying Tan, CEO of Habito, said:

“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.”

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.”

You can read more about the acquisition in City AM.