The FinTech neo-lender offers up to £150K equity loans to home buyers with a small deposit, allowing them to buy the home they love, years earlier. Proportunity plans to use this funding to grow its team and help buyers own $1 Billion worth of homes.
This new funding increases Proportunity’s maximum loan size from £90,000 up to £150,000 per home, boosting their buyers’ affordability even more and helping them buy homes they actually love.
Following a hot streak in the housing market, London-based neo-lender Proportunity, raised $150m funding through a mixed debt and equity round, on top of its recent $10m debt round in 2020. The finance has been raised with the key objective of helping more home buyers to get onto the housing ladder in a market where buyers are struggling to save up enough to afford a home, with incomes staying flat and house prices on the rise.
85% of renters in the UK want to own their own home, but can’t because of high deposit requirements and rapidly rising house prices which are squeezing affordability for those trying to get on the housing ladder.
In 2020, 65% of first-home buyers (FHBs) cited deposits and affordability as the main roadblocks. There are limited solutions available; banks lend up to a maximum of 4.5 times income and demand large deposits to mitigate house price risk. They are deterred from low-deposit lending by regulations and capital requirements, all of which Covid-19 has made worse. Help to Buy, the government scheme that provides a solution to new-build buyers, only serves 10% of FHBs and is set to end in April 2023.