London & Country Mortgages and Habito are said to be in discussion about a possible combination, according to Bloomberg. 

Both firms are said to be working with advisers on a deal, creating one of the UK’s largest mortgage brokers.

The deal, which is said to be announced in the coming months, would combine London & Country’s over-the-phone advisers with Habito’s online platforms, the Bloomberg source said. 

While discussions between the two brokers are ongoing, it was noted that the deal could still be delayed or fall apart.

Habito was founded by Daniel Hergerty in 2016 following a “horrific experience” when buying a home. 

The online mortgage broker is backed by venture capital and aims to give people the tools, knowledge, and expert support they need to help them buy and finance their homes, according to the company’s website. 

Bloomberg’s source said Habito’s last funding round valued it at about $180 million.

London & Country Mortgages was founded in the 1980s and has offices in Bath, Newcastle and London. According to the company website, the broker collects fees from the lender once the mortgage is complete but does not charge a fee to its customers. 

In March, Habito launched longer-term fixed rates for landlords at seven and 10 years.

Habito vice president of lending Alan Fitzpatrick explained that the move to offer longer-term mortgages made sense given recent moves by the Bank of England.

Commenting on the possible combination, London & Country says: “We don’t comment on market speculation.”

Habito did not immediately respond to a request for comment.