Monzo has unveiled plans to buy UK digital mortgage broker Habito.
The company said the acquisition will make it the first bank in the UK to offer a fully end-to-end mortgage broking process within its app.
The move comes as 450,000 customers already use Monzo’s existing homeownership feature to tack their mortgage.
The challenger bank describes the feature as a UK-first tool that connects any mortgage, displays balance and home value, and highlights better deals.
The acquisition of Habito aims to support the challenger bank’s wider goal to become a one-stop-shop for financial services.
Earlier this year, Monzo also launched both contents and home insurance as part of its product portfolio.
In October, Monzo rolled out a new built-in tax filing tool for sole traders and landlords.
“Monzo has transformed money management for millions and millions of customers – yet we know that mortgages still remain a complex, cumbersome pain point, and one we are looking to solve,” said Kunal Malani, chief banking officer, Monzo. “This is a huge step in our mission to make money work for everyone, and we’re excited to bring Monzo’s simplicity and transparency to one of life’s biggest financial moments.”
Last month, Monzo surpassed 14 million customers, with the digital bank onboarding two million across the six months to September.
During the period, numbers grew by nearly 40 per cent compared to last year.
Monzo is currently the largest digital bank in the UK and 7th largest overall by customer numbers.
The neobank also topped 800,000 business customers, with sign-ups during the first half increasing by 50 per cent.
Across this year, revenue at the bank increased by 48 per cent to £1.2 billion, with adjusted pre-tax profits up to £113.9 million from £13.9 million.
