Proportunity has raised £105 million investment through debt and equity funding as it aims to support more people achieve their UK home ownership dream.
The new investment follows a £7.3m funding round in 2020 for the London-based FinTech.
This latest debt and equity round was led by VentureFriends, Kibo Ventures and existing investors Anthemis, Entrepreneur First, and new UK proptech investors Amro Partners.
The new investment will enable Proportunity, which featured on our recent PropTech 50 ranking, to grow its team and will go towards helping more than 2,000 individuals and families to buy their first home or progress up the property ladder.
The funding will also increase its maximum loan size from £90,000 up to £150,000 per home, further boosting affordability for buyers and helping them secure the home of their choice.
Lending since 2018, Proportunity provides home purchase equity loans to support first home buyers in getting a foothold on the booming UK property market. The company also helps ‘second steppers’ secure a new home to accommodate changing circumstances, such as a growing family in a market where consumers struggle with affordability amid rising property prices.
Its loans are similar to those available through the UK Government’s Help to Buy scheme but are available for all homes, not just new builds. They enable buyers to afford homes with only a 5% deposit, reducing the amount they need in savings.
The Proportunity equity loan of up to £150,000 or 25% of the house price sits on top of the maximum mortgage that can be secured from a mainstream lender, enabling a buyer to borrow up to six times their income level. This additional financial leverage closes the significant gap between what many UK borrowers can secure from a mortgage and the cost of a home they wish to purchase.
Proportunity also utilises machine learning technology that helps identify fair valued homes in high potential growth areas, de-risking lending and removing the need for a large deposit.
Vadim Toader, Proportunity CEO and co-founder, said: “We’re delighted with the success of this latest investment round which will enable us to help thousands of people in the UK own their first home or progress up the property ladder.
“In the UK there is a £100-200K gap between what buyers want and what they can afford, mainly caused by maximum income/mortgage ratio restrictions and high deposit requirements. In a market of fast-rising house prices, first-time buyers and those wishing to progress on the property ladder are facing a losing battle.
“Proportunity provides a solution which closes the gap and helps buyers afford the property they want in the communities where they want to live.”