Shared equity fintech Proportunity is piloting a new way of lending with a group of estate agents that will help their home-buying clients either purchase their first home or trade up.
The agents involved include Jeremy Leaf & Co in North London and Edward Ashdale in South East London.
The lender says the service offers agents the ability to explore options for first time buyers as the government’s Help to Buy winds down, and those moving up the property ladder.
The government’s current share equity scheme is due to end in March 2023 and enables first time buyers to purchase a newbuild property with a deposit of 5%, topped up with a government loan of up to 20% outside London, and 40% inside the capital.
Proportunity recently raised £100 million to fund this new estate agency sector product – previously its loans were only available through a limited number of brokers.
Each Proportunity loan sits alongside a mainstream lender’s mortgage and can be used to secure a better interest rate on the main mortgage as the “loan to value – LTV” is reduced.
Also, the loan enables the buyer to get financing for up to six times their annual income.
Sam Samuel (pictured) of Edward Ashdale added: “There are 100s of would-be buyers in the market who find themselves just short of being able to finance the purchase of a property and we believe this idea offers a great solution”.
Proportunity founder Vadim Toader, says: “This should help the agencies [but also] more people will be able to convert from window-shopping to putting their feet on the living room table.”
Proportunity has had funding from several sources including, in 2018, Savills.