Monzo has announced the acquisition of UK-based digital mortgage broker Habito, with the move marking its first deal of this kind.
Acquiring Habito, which currently has approximately 100 employees, comes just as Monzo is working on expanding its mortgage offering and diversifying its portfolio, extending beyond its digital banking services.
The amount of the transaction remains undisclosed, as well as the terms of the deal. However, the acquisition is anticipated to be finalised in the spring of 2026.
Expanding into mortgage
The strategic deal positions Monzo among the first UK banks to provide an end-to-end mortgage broking experience within its app. The financial institution offers a Homeownership capability, stating that over 450,000 individuals utilise it to track their mortgage, home value, and mortgage deals.
According to a social media post by Kunal Malani, Monzo's Chief Banking Officer, as buying a home should be an exciting process, not an overwhelming one, by working together, Monzo and Habito intend to simplify how customers find, compare, and secure the right to mortgage, within the Monzo app.
Furthermore, recent data shows that 87% of UK mortgage seekers leveraged a mortgage broker. Since the start of its operations in 2016, Habito has been focusing its efforts on offering the tools that meet Brits’ needs, including mortgage switching and home-buying services. Backed by several investors, such as Augmentum Fintech, SBI Investment, and Volution, the company aims to make mortgages fairer and more optimal for individuals across the UK.
Monzo’s current strategic move comes on the heels of its partnership with Sage from October 2025, when the two teamed up with the purpose of augmenting tax filing for sole traders and landlords. Through a new tool, built in collaboration with Safe, Monzo sought to support sole traders and landlords in meeting the upcoming Making Tax Digital for Income Tax legislation.
The summer of 2025 saw Monzo join other financial services companies in announcing plans to launch a UK mobile phone service. The digital bank was looking into rolling out its digital SIM and offering monthly contracts, as mentioned at the time by people familiar with the matter cited by the Financial Times.
