Slaughters and Osborne Clarke advise on Monzo's move into mortgages

Slaughter and May is acting for UK digital bank and long-standing client Monzo on its first major M&A deal, the acquisition of digital mortgage broker Habito, advised by Osborne Clarke. The move takes Monzo beyond everyday banking, as it looks to plug regulated mortgage broking capability directly into its app.

Tapping customers for more

Monzo is one of the UK’s fastest growing challenger banks with more than 13 million customers. By bringing Habito’s digital tools and mortgage broker network under its umbrella, the bank is targeting deeper customer relationships and higher lifetime value, embedding a high-engagement product at a key moment in customers’ financial lives.

Chief banking officer at Monzo, Kunal Malani, said: "Monzo has transformed money management for millions and millions of customers - yet we know that mortgages still remain a complex, cumbersome pain point, and one we are looking to solve."

The transaction is expected to complete in spring 2026, subject to the usual regulatory approvals.

Profit mode

Monzo, recently valued at £6 billion, has moved into profit mode, reporting its first full year of profitability last year. The bank is now placing greater emphasis on profitability and sustainable growth rather than rapid customer acquisition alone, with the Habito deal forming part of that strategy.

Recent deals

Deal activity across the UK fintech and banking landscape shows both challengers and incumbent lenders reaching for M&A as a faster way to add new capabilities and drive scale, rather than build everything in house.

Recent deals include Ashurst advising on Blackstone-backed Mollie’s €1.05 billion takeover of UK fintech GoCardless, as well as A&O Shearman advising Santander on its £2.65 billion acquisition of TSB, with Macfarlanes acting for the seller.

Advising

Slaughter and May acted for Monzo, led by corporate partners David Griffith-Jones, David Shone and Kevin Howes. The firm has acted for Monzo since it was founded in 2015. Last year, it advised on the bank's £340 million funding round.

Osborne Clarke acted for Habito, led by corporate partner James Taylor.