AI-powered credit technology company Abound has expanded into the UK mortgage market after acquiring Ahauz, a specialist lender focused on shared equity mortgages.
Under the deal, which is Abound’s first acquisition, Ahauz will continue operating with its existing specialist focus, while gaining access to Abound’s capital and its AI-led underwriting approach.
This uses Open Banking data (with customer consent) to assess affordability beyond traditional credit scoring models.
The London-based FinTech said the move is aimed at building a broader suite of homeowner finance products, giving borrowers access to more flexible mortgage and loan options designed to better reflect real household circumstances.
The acquisition comes alongside the launch of Rezide Equity Loan, the company’s first homeowner-focused product.
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It also follows the firm passing £1 billion in lending less than five years after launch.
The company offers personal loans ranging from £1,000 to £20,000 over up to five years and is regulated by the Financial Conduct Authority.
In July last year, Abound reported a 25x net profit increase to £7.5 million.
The company’s revenue also rose from £22m to nearly £67m.
“From the second we first met the Ahauz team, it was clear that we shared a vision for how lending to homeowners could work so we’re absolutely delighted to welcome Ahauz into Abound,” said Abound CEO and co-founder, Gerald Chappell.
“Their track record in shared equity lending and technology makes them a perfect fit for our vision of reshaping consumer finance.
“Together, we’ll deliver more innovative products that expand opportunities for homebuyers and homeowners across the UK.”
João Rocha, CEO and co-founder of Ahauz, added: “Joining forces with Abound is an exciting step for Ahauz.
“Our mission has always been to unlock home ownership for customers in a smarter, fairer way.
“With Abound’s AI-driven technology and resources, we can scale our impact and bring new solutions to market more quickly.”