With the deadline for Help to Buy brought forward to October this year, Proportunity aims to capture the £5bn market gap set to be left behind. The addition of a zero deposit mortgage product to Proportunity’s existing offering, which also includes a mortgage booster loan, is the latest way the company is looking to expand options within the borrowing system.
According to Proportunity, the firm is also looking into a Rent to Buy offering.
Vadim Toader, Proportunity CEO and co-founder, says: “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. ”
House prices are increasing at the fastest rate in 17 years due to the cost of living crisis and rising inflation. This is exacerbated by 1.2 million properties now requiring higher stamp duty charges and higher interest rates from mortgage lenders. Due to these factors, first-time buyers are needing to provide higher deposits to access better mortgage rates and affordable repayments, making homeownership extremely challenging.
To get on the property ladder, it may be necessary for buyers to explore other lending options to make up the deficit between the deposit they have from savings vs. what they need to put down up-front. Proportunity aims to provide homebuyers with the right financing tools to help them get on or move up the property ladder, so they can buy the home they want, not just what they can afford.
Stefan Adrian Boronea, CTO and Co-Founder, adds: “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.”
