Digital mortgage broker Habito is planning to create a fully-automated platform which will offer a range of new services, after the start-up raised £5.5m through funding.
The firm, which helps customers complete the entire mortgage application online, has now raised a total of £8.2m through seed and angel investors.
Habito plans to use the new investment to speed up its growth and improve the technology behind its service, which includes building a fully automated end-to-end platform over the next 12 months.
The platform will allow Habito to offer other services, such as real-time mortgage approvals and automatic alerts when a better mortgage deal becomes available to customers.
Daniel Hegarty, chief executive of Habito, said the service will transform the “outdated” mortgage industry for millions of homeowners and new buyers across the country.
Mr Hegarty, who founded Habito in April last year, said: “The industry has suffered from a lack of innovation for decades and the outdated, paper-based manual processes aren’t fit for 21st century homeowners.”
He said there is a huge opportunity to the process simpler, more transparent and a lot less painful.
“Our technology empowers people to take control of their personal finances and protect themselves against getting or staying on the wrong mortgage.”
He said millions are either overpaying on their mortgage or terrified to even start the application process.
Since its launch, Habito has completed £50m in mortgage applications, which Mr Hegarty said signals a shift in how consumers want to engage with financial services.
The firm has also developed a digital mortgage adviser, or "chatbot", which halved the average amount of time spent on each case.
Habito gives customers access to over 60 lenders in real-time, and helps them complete the entire application online, unlike traditional brokers where the process can take several weeks.