Habito unveils its first range of mortgages

Source: Habito

Habito, the UK’s online mortgage broker today announces the launch of its groundbreaking mortgage origination platform with a suite of Habito-branded mortgages for individual landlords.

The range features the most comprehensive selection of high loan-to-value (LTV), competitive rates and long-term fixed deals for the buy-to-let market.

With the technological credentials that helped Habito pioneer free, fast and accurate mortgage advice in online mortgage broking, Habito has developed unique proprietary technology to provide the fastest mortgage process in the country. Decisions in Principle (DIPs) have been replaced with Habito Instant Decision which involves deeper checks at the outset, guaranteeing greater certainty and speed.

The move follows calls from an industry that has been dealt heavy restrictions and punitive charges in the past three years: soaring stamp duty, a bumper rise in capital gains tax payments and a steady squeeze on profits. And despite projections that six million households will be renting by 2025, landlords have been subjected to a stifling lack of innovation in the mortgage market.

Habito’s new range of BTL mortgages has been designed with the customer front and centre. It follows extensive landlord customer research which called for more clarity, fairness, speed, ease and innovation in a category that for too long has been characterised by delays, uncertainty and a distinct lack of empathy.

Habito’s range includes a wide number of 7-year fixed deals and 10-year fixed deals, promising greater choice for longer-term investors. The mortgages are competitively priced - some with rates as low as 2.59%. The broad range of 10 year fixed deals starts with a rate of 3.51%, while 7-year deals start from 3.31%. An introductory offer of 2.5% cashback is available to the first 15 customers*.

Daniel Hegarty, Founder and CEO of Habito says: “Habito exists to connect customers with the best possible mortgage products. For the past three years, we’ve invested heavily in our best-in-class brokerage to dramatically improve and evolve the process of getting a mortgage. Now we’re rolling up our sleeves to tackle the mortgages themselves. By applying our tech-first, people-centric principles, we’ve created a suite of mortgage products that speaks to one of the most under-served groups of borrowers: landlords.”

“We exist to free people from the hell of getting a mortgage. For buy-to-let landlords, hell means long waits, inflexible eligibility criteria and application decision uncertainty. We’re proud to bring to market a range of products that have been built with landlords in mind: long-term fixed rates, competitive pricing, low deposits and sympathetic to self-employed and older customers. We guarantee certainty and speed to offer. It’s the next generation of mortgages.”

Other product benefits and innovative eligibility criteria include:

*First 15 mortgages taken out will receive cashback equivalent to 2.5% of the value of their mortgage (up to £5,000)
Open to all, including first-time, self-employed, retired and older landlords
No minimum income for first-time landlords up to 75% LTV
No minimum value or maximum LTV restrictions for ex-local authority flats
No discrimination against landlords with tenants who claim benefits
Customers will only be able to access these products via the Habito Brokerage. No other brokerage or intermediary will have access to them
Applicants will only need to show 3 months of income (note: 2 years’ proof of income is needed for self-employed customers)

The Financial Conduct Authority (FCA) granted Habito permission to lend in support of Habito’s long-term ambition to drive much-needed change within the mortgage industry. Habito’s engineers, product teams, designers and researchers spent the last 18 months building a brand new lending platform, designed entirely around the customer. This move sees Habito evolve into a mortgage platform, bringing investors and borrowers together. The mortgages will be Habito-branded and an initial commitment of £500m provided by a leading, FCA-regulated financial institution is in place for this inaugural range proposition. Company buy-to-let and portfolio landlord mortgages will launch later this year. Beyond this, Habito is working with a number of large financial institutions to bring a range of residential mortgages to market in the coming months.

Habito’s brokerage will continue to operate as a separate business line providing free, impartial advice and whole-of-market mortgages to all its customers.

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