October 11, 2017
A London startup company Habito, has brought the whole mortgage culture online by taking an initiative to launch an app that will help the users mortgage their assets within no time. Atomico, the European VC firm founded by Skype’s Niklas Zennström has supported the startup in its endeavors by investing £18.5 million in Series B funding, with collaboration from the leading investors Revolutionary (Ad)Ventures and Ribbit Capital.
It takes the total raised by the UK company to more than $27 million. This is one of the biggest venture capital funds ever invested in a startup, featuring a comprehensive plan to replace the conventional order of system with an online chatbot.
As a matter of fact, Habito, which considers Trussle its direct, closest rival has hinted at the fact that this new capital will be used to incorporate the technology with high street lenders and leading retail banks to provide ‘real-time mortgage approvals’ facility with product and marketing development. The startup has also manifested its plans to expand its services to the other parts of the mortgage process, including life insurance and home.
How does this app facilitate you?
Entitling itself as a ‘digital mortgage broker’, Habito was created by Daniel Hegarty, who was formerly working as an early employee at Wonga to get rid of a ton of friction while applying for a mortgage. The startup company claims to observe more than 11,000 mortgage products across more than 50 renders in the real time to generate the most appropriate mortgage results based on the choices and circumstances of the individual.
The application process is quite simple and is completed within a short span of time, thus cutting down the charges the traditional mortgage brokers ask for.
Most interestingly, there is an additional aspect of the startup premise that has a huge potential to go beyond the realms of pricing. Once you have signed up to an application, you have to enter all the required details about your eligibility, property and current mortgage, then the startup effectively begins serving as a broker.
Functionality of app
The technology embedded in the app constantly monitors the mortgage products that are readily available on the market and send you a push notification if it finds you becoming mismatched and paying over the odd offers. The idea that surrounds the functionality of app focuses upon switching as effortlessly as possible. This is solely because a wide range of British homeowners are mismatched and paying lenders a whooping amount of £4,000 more than they require every year.
Atomico Partner Niall Wass lays an emphasis upon the fact by saying that Fintech companies are managing a whole lot of traditional areas that are ready to adopt a new approach, and this tech venture is one of them. He further said that the process of connecting lenders and borrowers in the conventional, residential mortgage space is quite fragmented, slow, and expensive with more than 10,000 offline brokers in the state of U.K.
In the nutshell
It is expected that this fundraising will be used as a tool to beef up the marketing with a TV advertisement while throwing light upon the other areas such as life insurance. It is yet to see how audiences perceive this new tech venture and give their feedback.