Monzo to Acquire Habito for Integrated Digital Mortgages

Monzo has revealed its plan to acquire Habito, a prominent digital mortgage broker in the UK. This move could position Monzo to become the first UK lender offering a fully integrated mortgage broking service directly within its mobile application.

The acquisition is anticipated to be finalised in the spring of 2026, pending regulatory approval.

This development builds upon Monzo’s existing Homeownership feature, which is currently used by over 450,000 customers to track their mortgages. The financial details of the agreement have not been made public.

The deal signifies a notable step in Monzo's broader strategy to expand its services beyond core banking products and establish itself as a primary financial provider for its customers.

Monzo has been actively working to diversify its sources of revenue, announcing intentions to introduce a UK mobile phone service as it explores growth avenues outside of traditional banking.

Strategic expansion into mortgage services

The acquisition of Habito targets a considerable market opportunity. According to research from the Intermediary Mortgage Lenders Association, 87% of individuals seeking a mortgage in the UK utilised a broker in 2024.

The move addresses what Monzo has identified as persistent complexity within the mortgage application process, a sector that has not seen the same level of digital advancement as other areas of financial services. By integrating a mortgage broker, Monzo is positioning itself to capture a share of this market and provide a more streamlined experience for its extensive customer base.

Operational integration and customer experience

Habito's digital mortgage platform is set to be integrated directly into the Monzo app. Monzo describes the goal of this integration as creating a simpler and faster mortgage experience designed around the needs of the customer.

This new functionality will connect with Monzo's existing Homeownership feature, which already enables customers to monitor their mortgage, track their property's value and identify potentially more favourable deals.

"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," explained Kunal Malani, Chief Banking Officer at Monzo.

Kunal adds: "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."

Monzo's growth and product development

The acquisition arrives amidst a period of growth for Monzo. Monzo now serves 14 million customers in total, including 800,000 businesses, which equates to one in seven UK companies. For the 2025 financial year, Monzo reported revenue of £1.2bn, an increase of 48% year-on-year.

Its adjusted profit before tax also saw a substantial rise to £113.9m from £13.6m in the preceding financial year.

Monzo continues to hold a high ranking for overall service quality in both personal and business banking in Great Britain, according to the Competition and Markets Authority. This marks its 10th consecutive top ranking.

Product innovations from Monzo include accounts for under-16s with savings interest, an Undo Payments feature and curated Exchange-Traded Fund (ETF) investments aimed at making investing more accessible.

"At Habito, we've always believed mortgages should be easier, fairer and simpler for everyone," stated Ying Tan, Chief Executive Officer of Habito.

Ying adds: "I'm incredibly proud of what our team has built, and I couldn't be more excited for this next chapter with Monzo. Together, we'll transform what the mortgage experience feels like – effortless, empowering and truly built around people."

The integration of Habito could allow Monzo to compete more directly with established banks in the mortgage sector while leveraging the digital-first approach that has been central to its customer acquisition success in other banking areas.