Habito mortgages, the leading online mortgage broker who recently branched out into a full home buying service, where it handles the conveyancing and building surveys (and everything else), has secured financing from existing investors said to be worth £5 million.
That should keep the roof over their heads for a while.
However the company valuation is thought to be a significant reduction on their previous funding rounds, with a current valuation less than £10 million. Their previous highs saw them at a valuation near £200 million. Wow!
Existing investors include Atomico, Augmentum Fintech, Ribbit Capital and Mosaic Ventures.
It is also rumoured that they have stopped offering their innovative mortgage product, Habito One, which they are the also the mortgage lender themselves. This was a full-term fixed rate mortgage – from 10 to 40 year mortgage term.
It was also reported previously that a merger with London & Country Mortgages, a very large nationwide broker in the UK, had fallen through.
Recent news has also come to light that a significant reduction in staff has been made as part of the financing deal.
Habito themselves said:
"In spite of challenging market conditions for tech firms and fintechs more specifically, Habito is in the process of closing its latest round of funding.
"We can't comment on the specifics of the deal yet, nor can we confirm Habito's valuation which remains commercially sensitive.
"However, we can confirm that our future plans are focused on achieving profitability and we look forward to sharing more on that in the coming weeks.
"In the meantime, we continue to perform ahead of plan and deliver outstanding customer service to homeowners and would-be mortgage-holders facing down the highest interest rates in almost a generation and the ever-rising cost of living."
Habito offer a great service, so we hope this continues their success – and is able to keep offering free mortgage advice to customers. Learn more about Habito with our Habito review and check out the Habito website¹.