A future-proof, ultra flexible mortgage

Rates start at 2.99% and go up to 5.56%. Your rate will depend on two things: your loan to value (LTV) and the length of your mortgage term.

LTV is the size of your mortgage as a percent of the property value. So if you’re buying with a 10% deposit, that’s a 90% LTV. If you’ve paid off 40% of your mortgage on your current home, that’s a 60% LTV.

As you pay off more of your mortgage, you can switch down to a lower interest rate with Habito One. There might be a fee to do this.

Here’s a breakdown of Habito One interest rates:

1. 40% deposit or 60% LTV
   1. Mortgage term 10–15 years: 2.99%
   2. Mortgage term 16–20 years: 3.29%
   3. Mortgage term 21–25 years: 3.49%
   4. Mortgage term 26–30 years: 3.59%
   5. Mortgage term 31–35 years: 3.84%
   6. Mortgage term 36–40 years: 4.41%‍
2. 25% deposit or 75% LTV
   1. Mortgage term 10–15 years: 3.29%
   2. Mortgage term 16–20 years: 3.39%
   3. Mortgage term 21–25 years: 3.59%
   4. Mortgage term 26–30 years: 3.69%
   5. Mortgage term 31–35 years: 3.94%
   6. Mortgage term 36–40 years: 4.51%‍
3. 20% deposit or 80% LTV
   1. Mortgage term 10–15 years: 3.59%
   2. Mortgage term 16–20 years: 3.69%
   3. Mortgage term 21–25 years: 3.84%
   4. Mortgage term 26–30 years: 3.94%
   5. Mortgage term 31–35 years: 4.19%
   6. Mortgage term 36–40 years: 4.76%‍
4. 15% deposit or 85% LTV
   1. Mortgage term 10–15 years: 3.89%
   2. Mortgage term 16–20 years: 3.99%
   3. Mortgage term 21–25 years: 4.14%
   4. Mortgage term 26–30 years: 4.24%
   5. Mortgage term 31–35 years: 4.49%
   6. Mortgage term 36–40 years: 5.06%‍
5. 10% deposit or 90% LTV
   1. Mortgage term 10–15 years: 4.39%
   2. Mortgage term 16–20 years: 4.49%
   3. Mortgage term 21–25 years: 4.64%
   4. Mortgage term 26–30 years: 4.74%
   5. Mortgage term 31–35 years: 4.99%
   6. Mortgage term 36–40 years: 5.56%‍

It’s because the longer you fix, the longer you get certainty for, and so the slightly more you pay for that certainty. Our rates are a little higher than the cheapest 5 year fixed rate mortgages from other lenders – just like those 5 year fixes are more expensive than 2 year fixes.

Where Habito One is different from other fixed rates is the amount of flexibility you get. You can leave your Habito One mortgage at any time, without having to pay an exit fee. And where most mortgages only let you overpay by up to 10%, you can pay as much towards your Habito One mortgage as you want – think raises, promotions, and inheritance – without a penalty. So if you’re lucky enough to be able to get yourself mortgage-free a bit sooner than you thought, you’ll always have the freedom to do it.

If interest rates rise, with Habito One you’ll be likely to save money over the life of your mortgage compared to switching between 2 or 5 year fixed rates. That’s because your monthly payments will never rise even if other mortgage interest rates do. You also won’t have to pay remortgaging costs every time you switch, which are usually around £1,000 a pop.

You can move home whenever you like with a Habito One mortgage. You’ll have a couple of options when you do:

• Take your Habito One mortgage with you.

  Also known as “porting”. You’ll have to pay a valuation fee on the new property, £350. That’s so we can check the new place is worth what we’re lending you on your mortgage. We’ll also do some other checks on the property to make sure we’re happy to lend you a mortgage for it. There’ll also be some legal costs to pay your conveyancer.

  If you’re not borrowing any more money, you won’t have to pay us any other fees. If you’d like to borrow more, for example if your new home is more expensive, you’ll also pay a product fee of £1,995.

• Pay off your whole mortgage when you sell.

  Because there’s no early repayment charge with Habito One, you can pay off your whole mortgage at once when you sell, and get a new mortgage with your new home (Habito One or otherwise).

  If you choose to get Habito One again, you’ll need to pay valuation and product fees. Separately, you’ll also have to pay legal costs to your conveyancer.

There are a few ways this mortgage can save you money.

• If interest rates rise, you won’t be affected.

  Interest rates can go up and down over the years. They used to be much higher. In 2007, the average fixed mortgage interest rate was 5.84%. At the start of the 1990s, the average was just under 14%. Right now, rates are the lowest they’ve been in decades. So you can use Habito One to secure a lower rate now, that’s guaranteed for the whole mortgage, all while knowing you have the flexibility to leave whenever if you find something you like better.

• You’ll save on the costs of switching.

  Changing mortgage deals is like getting a whole new mortgage – same paperwork, admin, and fees. We near-universally hear from people that having to remortgage every 2 or 5 years feels unnecessary and stressful. And it costs around £1,000 each time. With Habito One you can avoid not just the headaches, but the costs of switching too – costs that really add up over your whole term.

• You could become mortgage-free sooner.

  Habito One lets you overpay as much as you want, whenever you want, for the entirety of your mortgage – no early repayment charges, no catches. That means you can put things like bonuses and inheritance towards your mortgage and pay it off sooner. There’s no better way to save money on your mortgage than by getting rid of it early.

Habito One is open to first time buyers, home movers, and remortgagers in England and Wales.

If you have a 10% deposit, you’re more than welcome. The property price range is £50,000 to £10 million.

We’re also hoping to bring out a deal for 5% deposits soon – watch this space.

Here are the fees for a Habito One mortgage:

• Product fee: £1,995. A little higher than most mortgages, idea being you’ll only ever need to pay a product fee once – rather than every couple of years to switch between short term fixes.
• Electronic transfer fee: £35. This is what it costs us to transfer your mortgage money.
• Valuation fee: £350 for a purchase, free for a remortgage. This is so we can check the value of your property matches what we’re lending on your mortgage.
• Early repayment charge: None. That means you can overpay as much as you want.
• Exit fee: None. So you can leave or switch whenever you want.