Leading digital bank Monzo has announced its agreement to acquire Habito, the UK’s leading digital mortgage broker. This strategic move, which marks Monzo’s first ever piece of M&A, is designed to transform the mortgage experience by integrating a fully digital, end-to-end broking service directly into the Monzo app.
The acquisition positions Monzo as the first UK bank to offer such a comprehensive in-app broking experience. By bringing Habito’s technology into its ecosystem, Monzo aims to simplify what is traditionally a complex and cumbersome process for millions of customers.
Solving a key financial pain point
The decision to acquire Habito aligns with Monzo’s mission to become the central app for its customers’ entire financial lives. Mortgages represent one of the most significant financial milestones for consumers, yet research indicates that in 2024, 87% of UK mortgage seekers still relied on a broker to navigate the market.
Kunal Malani, Chief Banking Officer at Monzo, commented: “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”.
Monzo is already well-positioned in this space, with more than 450,000 customers currently using its “Homeownership” feature to track mortgage balances and home values. The Habito integration will expand this from mere tracking to active, seamless broking.
Exceptional growth for the digital leader
The announcement follows a year of record-breaking performance for Monzo, which is now the UK’s largest digital bank and the 7th largest bank overall by customer numbers. Key milestones include:
- Customer Base: Reaching 14 million total customers, including 800,000 business accounts.
- Financial Performance: Revenue increased 48% to £1.2bn in FY2025, with adjusted profit before tax climbing to £113.9m.
- Service Excellence: Ranked #1 for overall service quality in personal and business banking by the CMA for the tenth time.
Ying Tan, CEO of Habito, added: “Together, we’ll transform what the mortgage experience feels like—effortless, empowering, and truly built around people”.
The transaction’s financial terms remain undisclosed. The deal is expected to close in Spring 2026, subject to the standard regulatory approvals from BaFin and other relevant authorities.
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