Proportunity, a neolender offering equity loans to homebuyers to enable them to borrow more money alongside what they’re offered by traditional mortgage lenders, has now launched a zero deposit mortgage product.
The idea is to help those who cannot meet the 5% mortgage deposit requirement get onto the property ladder. The £4.4bn market for such prospective buyers will have a gap following the end of the government’s Help to Buy scheme that Proportunity says it will fill.
The product will be available on any home beneath £1m, and will analyse data using AI to see whether the purchase price of a property reflects its true value.
Vadim Toader, chief executive and co-founder of Proportunity, said:
“In today’s market, rising interest rates, an unaffordable mortgage, and cost of living crises are making the process of buying a home even more challenging. We are committed to becoming a trusted provider of home buying services for anyone struggling to buy the home they desire. The new products we are developing will enable buyers to overcome various barriers to homeownership. We’ve already financed over £100m of homes, helping over 260 people onto the property ladder, and we’re not slowing down anytime soon.”
Stefan Adrian Boronea, co-founder, added:
“With house prices in the UK increasing at such a pace, it’s more important than ever for home buyers to know which areas are currently most undervalued, so they are able to make sound and informed decisions – Proportunity can help them do that. Our Proportunity home index (PHI) enables customers to buy smarter – identifying undervalued homes and avoiding overpriced ones.”
Proportunity currently offer 25% of the value of a property (up to £150,000) in finance at an interest rate between 5.99% and 8.49%.
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