It aims to capture the multi-billion market gap set to be left behind by Help to Buy
Neolender Proportunity has announced it is working on bringing its first zero deposit mortgage product to the market later this year.
With the deadline for Help to Buy brought forward to October this year, Proportunity aims to capture the £5 billion market gap set to be left behind.
According to the firm, the addition of a zero-deposit mortgage product to its existing offering, which also includes a mortgage booster loan, is the latest of its efforts at disrupt what it sees as ‘the broken borrowing system’. The announcement of the planned launch was made as part of Proportunity’s crowdfunding campaign with Seedrs. The campaign will be live until June 30, and the final investment will be announced next month.
Read more: What’s next after Help to Buy ends?
Aside from the zero-deposit product, Proportunity also mentioned in its fundraise video that it will be looking into a Rent to Buy offering.
“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,” Vadim Toader, co-founder and chief executive of Proportunity, said.
“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 £100 million of homes, helping over 260 people on to the property ladder, and we’re not slowing down anytime soon.”
Stefan Adrian Boronea, co-founder and chief technology officer of Proportunity, stressed that with house prices in the UK increasing at a fast 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 enables customers to buy smarter – identifying undervalued homes and avoiding overpriced ones,” Boronea said.
Proportunity said its proposition is similar to the UK government’s Help to Buy scheme, but it is available on any home, removing the restriction to new builds, and raising the home’s price cap from £600,000 to £1 million.