The Future of Mortgages

We wrote last April about the opportunity for habito to bring mortgages into the 21st century.

Mortgages are an enormous category, over £200 billion in the UK alone. Yet for a commodity-like product — who cares which lender your money comes from — it is exceedingly complex for a consumer to find the right mortgage, struggle through the jargon, and the mountain of paperwork, then stay on the best deal forever.

habito changed all of this in less than 12 months. Their AI-powered chatbot provides the right advice to homebuyers in minutes, with access to over 60 lenders and 10,000 mortgage products, and takes care of getting them the mortgage they need. Having worked closely with Daniel and the habito team for 18 months, we know that while this consumer feat may appear simple, the product development effort to achieve it has been enormous and has involved many iterations. And we know this is just the beginning for them as they seek to become the future of mortgages.

Daniel’s vision is to stand side-by-side with customers as they navigate one of their most critical life decisions, and to completely reinvent the mortgage experience. Using software to automate this process end-to-end is the goal for the next few years, and habito will soon be in a position to create new types of mortgage products, such as real-time completion or personalised yield curves and capital repayments.

We love entrepreneurs who are reinventing so-called boring categories like mortgages and we see many other opportunities within financial services. So, if you’re working on a big idea in the space, please get in touch.

Additional Recent Posts from the Mosaic Ventures Team:

Trust in a Robo-Advisor World — Martin Ford’s “Rise of the Robots” is one of the most provocative books I’ve read in the past 12 months. As a “glass-half-full” VC investor, I don’t often enjoy pessimistic visions of the world, but Ford makes strong arguments about the prospect of a jobless future. He rejects Panglossian futuristic visions with well-researched insights into the next cycle of automation, driven by both specialised and general artificial intelligence, which he believes will affect huge swathes of the global economy. A supporting signal we observed last week at YC’s famed Demo Day was the dozen or so robot startups, tackling everything from research lab work to industrial inspections, with the promise of cheaper costs. Read More

Our Investment in Habito — We believe that trusted robo-advisors have a bright future. When it comes to supporting financial decisions for the average consumer, technology can deliver far superior advice than a human-powered service. With wealth management as the initial target for robo-advice — and Wealthfront and Betterment leading the charge in the US — who might be next in the firing line? Read More

Where is all the innovation in insurance? Let the capital flow. — A giant and heavily regulated industry which many would argue has lost sight of its customers should be ripe for attack. After all, entrepreneurs are tackling some of the toughest challenges in sectors like healthcare, transportation and financial services, using software to radically transform the product offering. Yet insurance has been overlooked, protected by large capital requirements and regulatory complexity. Read More

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