Understanding Habito: A Comprehensive Guide to Mortgage Broking
Your home may be repossessed if you do not keep up repayments on your mortgage. In this article, we’ll explore Habito, a digital-first mortgage broker that offers access to a wide array of deals and services tailored to homebuyers.
What is Habito?
Founded in 2016, Habito is a fee-free digital mortgage broker that connects borrowers with over 90 lenders, providing a streamlined service for mortgage inquiries, advice, and applications through online and live chat channels. This modern approach is designed to make the mortgage application process as efficient and effortless as possible.
Services and Products Offered by Habito
Mortgage Solutions
Habito caters to various types of borrowers, including:
- First-Time Buyers: Assisting those with limited cash deposits, Habito offers high loan-to-value (LTV) deals, including 95% and 100% LTV mortgages.
- Home Movers: Providing advice and deal comparisons to facilitate smoother transitions.
- Remortgagers: Helping borrowers reassess their existing mortgage deals.
- Buy-to-Let Investors: Tailored products for landlords looking to extend their property portfolios.
While Habito has extensive access to market deals, it’s essential to note that certain direct-only mortgage offers are not available to brokers.
Habito Plus
For those seeking a more comprehensive solution, Habito Plus is a premium service that combines mortgage advice with property surveys and conveyancing services. There is a fee for this package, but prospective clients receive transparent pricing upfront, allowing for informed decision-making.
Insurance Options
In addition to mortgages, Habito can provide insurance protection policies, including life insurance, critical illness cover, and income protection.
Fees and Charges
Interestingly, accessing Habito’s mortgage broker service incurs no fees for customers. The brokerage earns income through lender-paid procurement fees, meaning your only potential costs relate to the lender’s fees, such as arrangement or product fees.
However, Habito Plus does carry additional costs based on the scope of the property purchase, which can vary significantly.
How to Get a Mortgage with Habito
The application process with Habito is straightforward:
- Registration: Start by registering on the Habito website.
- Fact Find Form: Complete an online form to provide necessary information regarding your financial situation.
- Broker Assignment: You’ll be paired with a dedicated Habito broker who will assess your needs and recommend suitable deals.
- Application Process: Your broker will facilitate the mortgage application, managing communications through live chat.
- Updates: You can monitor your application’s progress via your online Habito account.
Timeline: How Long Does It Take?
The time for a formal mortgage offer can vary based on individual circumstances and lender specifics, ranging from days to several weeks for more complex cases. Most offers remain valid for up to six months, giving you some flexibility.
What Do Customers Say About Habito?
According to reviews on Trustpilot, Habito boasts an impressive rating of 4.9 out of 5 based on over 10,000 reviews. A remarkable 92% of reviewers award the broker five stars, underscoring its reputation for excellent customer service and efficiency.
Is Habito Right for You?
Given its fee-free service structure and strong customer satisfaction ratings, Habito is worth considering for mortgage brokering. However, being primarily digital, it may suit customers who are comfortable conducting transactions online.
Before making a decision, conducting thorough research and comparing other brokers is always a wise strategy.
Is Habito Plus Worth the Extra Cost?
The Habito Plus service merges mortgage advice with conveyancing and valuation, which could be beneficial depending on your situation. It’s essential to compare this option with costs from other service providers in the market to ensure you’re making an informed choice.
Frequently Asked Questions (FAQs)
Is Habito Mortgage Broker Service Really Free?
Yes, Habito does not charge fees for its services. The income comes from procurement fees paid by lenders when you secure a mortgage.
Do I Need a High Credit Score to Get a Mortgage through Habito?
While a good credit score is advantageous, Habito partners with some lenders who offer options for borrowers with less-than-perfect credit histories.
Will Using Habito Affect My Credit Score?
A formal application through Habito will initiate a credit check, which may impact your credit score. However, interactions before a formal application will not affect it.
What is Habito Plus?
Habito Plus refers to a premium service that offers comprehensive mortgage advice alongside conveyancing and property surveys.
Do I Need Buildings Insurance with a Habito Mortgage?
Yes, lenders generally require you to have buildings insurance to protect the property against unforeseen incidents.
How Much Can I Borrow with Habito?
Your borrowing potential is determined by individual lender criteria, influenced by your financial situation. Habito’s advisors can help guide you on likely amounts based on your circumstances.
What Rate Will I Get with Habito?
The mortgage rate will depend on several factors, including your deposit amount and the corresponding loan-to-value ratio.
Conclusion
In summary, Habito stands out as an innovative, digital-first mortgage broker with strong ratings and no service fees. Whether you’re a first-time buyer or a seasoned investor, exploring the options available with Habito can streamline your mortgage experience. With a clear understanding of its offerings and application processes, you can navigate the mortgage landscape effectively.
Remember, your home may be repossessed if you do not keep up repayments on your mortgage—so choose wisely!
