A new digital mortgage broker was launched on 11 April, which promises to find borrowers the best mortgage for them within around half an hour.
Backed by a £1.55m seed funding round led by Mosaic Ventures, Habito claims to use unique proprietary technology to be able to analyse every mortgage across 100 lenders in seconds.
The best deal is identified based on individual circumstances, with an online application process aimed at completion within 30 minutes. A customer runs through a simple application, before an automated advice process attempts to map out the next five years of their finances, and makes a recommendation.
Habito will then continually monitor the market and alert customers if a better deal ever becomes available, helping them switch if needs be.
Directly authorised by the Financial Conduct Authority, the service does not charge consumers a fee at the point of use.
Daniel Hegarty, founder and chief executive of Habito, said it would make its money from the procuration fees offered by lenders, with anything above the 35 basis points average being passed back to the consumer “in order to remain impartial”.
So far the firm has 10 employees, with a phone line available for those who prefer to talk with someone rather completing the process all online.
The next six months will see continual improvements of the platform, as more people use it, and further funding rounds are due, which is likely to take place later in the year to support its expansion, Mr Hegarty said.
“Technology has transformed our lives beyond recognition, so it’s hard to believe that applying for a mortgage today remains no different from the difficult and often protracted process of 10, 20 or even 30 years ago,” he added.
Chris Taylor, director and Independent Mortgage Consultant at London Mortgage Brokers, said: “This gives the consumer more choice, and the appeal is to customers who have an idea of what they want, so probably more attractive to those seeking execution-only or who want to move quickly.
“If people are comfortable largely making their own decisions that’s great. But 30 minutes completion could mean they have completed before they really know what it is they have bought.”