Unmortgage, a fledgling finance firm that offers a new model of ‘gradual’ home ownership has received start-up funding of £10 million and recruited a senior Countrywide executive to prepare it for launch next year.
As its name suggests the company offers home buyers a co-ownership package, rather than a loan. This enables buyers to purchase a property with a deposit of just 5% and then slowly buy a greater share in it over time.
Buyers who use Unmortgage pay rent to the company for the outstanding share in the property they have yet to buy back.
The company has received £10 million in a seed round from two leading tech investment firms Anthemis Exponential Ventures, and Augmentum Fintech.
It has also recruited Johnny Morris (left) as its Chief Data Officer who arrives following a five-year-stint as Research and Analytics Director at Countrywide
Due to launch next year, it is designed to unlock the key conundrum of the housing market; renters often struggle both to save up the deposit required to buy a property or get a mortgage.
CEO Ray Rafiq-Omar (pictured, middle, main pic) says his new approach to home ownership offers the security of home ownership with the flexibility of renting, although its customers will be able to buy themselves out the arrangement if they can eventually get an affordable mortgage with three months’ notice.
The deal will make Unmortgage both a home owner and landlord itself in each property it enters into a deal over with buyers, and says it will raise rents in line with inflation via regular reviews. Unmortgaged will also revalue each property on a monthly basis.