Robo-adviser enters mortgage lending

Buy-to-let borrowers are also now subject to more stringent affordability testing under the Prudential Regulation Authority's tightened underwriting rules.

In addition the government has proposed abolishing the so-called ‘no fault’ section 21 notices, which give landlords the power to evict tenants at the end of their tenancy without a reason.

Habito stated its landlord research had shown the industry was calling for "more clarity, speed, fairness, ease and innovation" after such changes, which it hopes to fulfil with its ‘Habito instant decision’.

A traditional mortgage ‘decision in principle’ is a promise from a lender that it will lend a certain amount to a consumer before they've finalised the purchase of their home and is made after basic affordability and credit checks.

Habito launched its robo-adviser back in September 2016 to "plug the advice gap" and has since raised millions of pounds to invest in mortgage platform technology and expand its reach into retail banks.

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