Habito has raised £5 million in funding a month after reports revealed it is to lay off half of its broker team.

The digital mortgage broker says it is aiming to reach profitability within the next 12 months.

The company, estimated to employ between 150-200 staff, employs fewer brokers than competitors such as Trussle due to a technology-first approach.

The FT reported that a dozen or more of its team of 30-plus brokers will be let go in the coming weeks.

Meanwhile the latest funding round includes existing investors Augmentum Fintech, SBI Investment and Volution.

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“Over the past six years, we’ve been on a mission to make mortgages easier with our unmatched technology and best-in-class mortgage advisors and case managers,” founder and CEO Daniel Hegarty told Finextra.

“With the cost of living biting, energy prices sky-rocketing and interest rates at a historic high it’s more important than ever for mortgage-holders and would-be homeowners to have access to the very best mortgage and home-buying advice.”

Habito previously raised £35m in a Series C round in late 2020.

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