Habito review

If you’re looking for a speedy, hassle-free way to find the best mortgage deal, Habito could be a great tool to use.

The online mortgage broker was designed to remove the stress of searching through tens of thousands of mortgages. What’s more, it’s completely free to use.

After collecting some basic details, Habito uses an intelligent algorithm to search through over 20,000 products from more than 90 lenders to find you a suitable mortgage deal. The process takes around 15 minutes.

If you have any questions, you can contact a human via telephone or live online chat.

You can even manage your completed mortgage through Habito or use it to identify the best remortgaging opportunities.

How does Habito work?

Once you’ve created a Habito account, you’ll be asked to fill in basic personal and financial details, as well as what type of mortgage you’re looking for.

This information will be passed on to one of Habito’s mortgage experts, whom you can contact via live online chat or telephone. They are available between 09.00 and 21.00 every day, apart from Fridays when they’re available from 09.00 until 17.00.

Habito’s experts will recommend you a mortgage deal based on the information submitted and a basic affordability check that leaves no footprint on your credit record. If you wish, they’ll also submit your application to the lender.

This will hopefully lead to an Agreement In Principle from the lender, subject to its own credit checks.

Is Habito safe?

Habito is authorised and regulated by the Financial Conduct Authority, which means it’s bound to the same regulations as all major financial companies across the UK.

The company promises never to unnecessarily share your personal data with a third party.

The service is legitimately free to use. There are no hidden charges. Habito is paid commission by lenders, not its customers. Nevertheless, it will still reveal how much commission is being made from your deal.

Habito founder Daniel Hegarty talks about how the service is different

Are there alternatives?

Other mortgage brokers have already launched robo-advice platforms. These include:

• Trussle. This will search through thousands of products from more than 90 lenders to help you find the right mortgage. You can then track each stage of your mortgage application through a personal digital Trussle timeline.
• Dashly. This smartphone app searches through tens of thousands of mortgages to help you find the best deal, then sends you alerts whenever you can save money by switching mortgage.
• MortgageGym. This online broker allows you to find the best mortgage for your circumstances in 60 seconds and save yourself around £500 on mortgage fees.

Where do I sign up?

You can visit Habito and create an account within minutes. If you prefer, you can sign up using your Google or Facebook account.

How does Habito make money?

Habito receives commission from the lenders it recommends to you, so there’s no need to charge its users.

What is Habito Go?

Habito Go is a bridging loan service, which allows you to bid for a property as a cash buyer, rather than with a mortgage.

Cash buyers tend to be viewed more favourably by sellers, because it is easier to complete the sale quickly and there is typically less chance of the deal falling through. As such, this service could be useful to stand out if there are several parties bidding for a property. According to Habito, cash buyers are therefore usually able to negotiate a discount on the selling price.

To help speed up the sale, the Habito Go service includes fast-track property valuation and conveyancing services. You’ll also be paired up with a property sales expert, who will give you advice to help you negotiate the best selling price. The lender says that the could be completed in as little as 10 days using this service.

You’ll pay a one-off fee equal to 1.95% for this service, plus interest of 0.5% per month on the bridging loan. Interest is calculated daily.

Is Habito now a mortgage lender?

In July 2019, Habito launched a comprehensive range of its own buy-to-let mortgages, marking its first move into the mortgage lending market.

This range of mortgages were only available to individual landlords, although Habito claims that mortgages for portfolio landlords and buy-to-let companies will be available soon. Applicants can choose between mortgage terms of two, three, five, seven or ten years. Some mortgages have an application fee, although there are fee-free options with a slighter higher interest rate.

The lender offers an instant decision in principle on all applications.

Despite this move into offering its own mortgages, Habito insists its mortgage brokerage will remain its main business model.

Habito vs a traditional mortgage provider

There are few buy-to-let mortgage lenders offering such a wide range of mortgage options, and this range looks set to grow in the future.

If you are an individual buy-to-let landlord, there may well be a suitable mortgage for you. Habito lends to first-time and existing landlords, whether they’re employed, self-employed or retired.

Ultimately though, applicants will be keen to secure the lowest rate, so you should compare Habito to other lenders on the market.

You could use Habito to do this, as the service has committed to providing an independent, whole-of-market brokerage service.

What is the Habito One mortgage for life?

Habito announced in March 2021 that it would be introducing a first-of-its-kind mortgage, in the form of “Habito One”. It’s basically a fixed mortgage for life, with a term of up to 40 years, which doesn’t currently exist anywhere else in the UK lending market.

It works by fixing your mortgage interest rate, and therefore your monthly payments, for the entire length of the mortgage, which could be up to four decades. This is designed to provide homebuyers with certainty over how much they will be paying each month for their entire mortgage term, plus they can also avoid paying remortgaging fees every few years. Habito also says that should you decide to exit such a lengthy mortgage arrangement part-way through, there won’t be any early repayment charges.

However, it’s worth noting that it’s still important to compare mortgages. This is because the application fee and interest rate you’re offered on a 40-year mortgage, whilst providing prolonged certainty, may not necessarily work out cheaper for everyone in the long run (compared to the alternative of seeking out the best mortgage rate on the market and switching every two to five years).

Habito’s customer reviews

In our 2023 customer satisfaction survey, Habito scored 3.5 out of 5 stars with 78% of its customers saying they’d recommend the brand to a friend.

Customers in our survey commented positively on Habito’s service and rates.

Here is some of the feedback we got from Habito mortgage customers:

“Great rates and fantastic customer service.”
“They have been very informative throughout the whole process.”
“Very useful and easy to use.”

Habito’s pros and cons

The bottom line

The jury may still be out on digital mortgage brokers, but Habito is free and so quick to use that you might as well give it a shot.

Frequently asked questions about Habito

• Will Habito work with my personal situation?

  Even if your situation is particularly complicated, Habito’s human advisors will be able to ask you more questions to ensure they find you the best possible deal.

• Is my data safe with Habito?

  Habito is regulated by the Financial Conduct Authority, which means it is bound by the same data protection standards as any major financial company. It promises not to share your details with any third party beyond what’s necessary.

• Why is using Habito cheaper and easier than going directly to my bank?

  The main advantage of using Habito is their impartiality. Habito aren’t gaining anything by encouraging you to use a particular bank – their only concern is finding the best deal. While a bank will only offer their own products, Habito has access to a wide range of products from a variety of different lenders.

• How long will it take to get my mortgage with Habito?

  While this varies from case to case, on average it’ll take between 4-8 weeks. Habito will give you a reliable estimate based on your application and your chosen lender once you’ve applied. Habito’s case management team are always in contact with lenders, and so they’ll keep you informed on a daily basis.

• Can Habito assist me if I'm paying too much on my mortgage?

  Yes. Habito have a mortgage calculator on their website that you can use to find out how much you should be paying. However, the calculator doesn’t take into account certain factors such as debt levels, dependent, age and credit score. To take account of these factors, you’ll need to fill out some information and speak to Habito’s team of advisers.