Digital mortgage broker Habito has raised £5.5m in Series A funding led by Silicon Valley-based Ribbit Capital, with participation from existing investor Mosaic Ventures.

The firm plans to use the new investment to accelerate its growth and improve its technology.

Since its launch in April 2016, Habito says it has helped more than 20,000 people better understand their mortgage and has completed £50 million in mortgage applications.

Over the next 12 months, habito plans to further develop its machine learning capabilities by creating a fully automated end-to-end platform which will enable it to offer new services, such as real-time mortgage approvals and automatic alerts when a better mortgage deal becomes available to registered customers.

Daniel Hegarty, CEO of habito, said: “The amazing response we’ve received from customers has proved what we always knew – there’s a huge opportunity to make the experience of getting a mortgage simpler, more transparent and a lot less painful.

“The industry has suffered from a lack of innovation for decades and the outdated, paper-based manual processes aren’t fit for 21st century homeowners. Our technology empowers people to take control of their personal finances and protect themselves against getting or staying on the wrong mortgage.

“We’re excited to continue to build our business and deliver new services that provide Britons with the best mortgage experience possible.”