Habito is in talks for rescue investment funding following failed merger talks with L&C, Sky News reports.
Sky News claimed that Habito, which launched in 2016, is close to gaining approval for a capital injection worth more than £5m from existing investors.
Sources told Sky News that the new funding was likely to be at a nominal pre-money valuation as low as in the single-digit millions of dollars.
The firm has previously secured more than £60m in investment since its launch, with a £35m Series C round completed two years ago.
Habito shareholders include Atomico, Augmentum Fintech, Mosaic Ventures and Ribbit Capital.
Last week, it was reported that Habito was cutting dozens of mortgage broker roles as it seeks to slash costs.
A spokesperson told Sky News: “In spite of challenging market conditions for tech firms and fintechs more specifically, Habito is in the process of closing its latest round of funding.
“We can’t comment on the specifics of the deal yet, nor can we confirm Habito’s valuation which remains commercially sensitive.
“However, we can confirm that our future plans are focused on achieving profitability and we look forward to sharing more on that in the coming weeks.
“In the meantime, we continue to perform ahead of plan and deliver outstanding customer service to homeowners and would-be mortgage-holders facing down the highest interest rates in almost a generation and the ever-rising cost of living.”
