Proportunity, a mortgage enabler for home buyers, is planning to raise growth capital on Seedrs.
Proportunity is an interesting financing platform as it provides part of the capital needed to purchase a home. As prices rise along with inflation, Proportunity can provide an alternative path for home ownership in an already challenging real estate environment.
According to the website, you still commit a downpayment (say 5% of value) but then alongside a traditional mortgage lender, Proportunity can step in and provide a portion of the purchase price in an interest-only loan. While you may pay off the Proportunity loan you may also wait until you sell the home and then pay the lender back.
To quote the website:
“You finance the purchase of your home with your 5% deposit, the Proportunity Loan (to cover up to 25%), and a regular mortgage from a high street lender (to cover the rest).
The Proportunity Loan is an equity loan. It increases your budget by up to £150k, meaning you can buy a better place, sooner. Think Help to Buy but without the restrictions.
You will still need a regular mortgage too. We can put you in touch with a trusted mortgage adviser who can help, they will handle both finance applications for you at the same time. Once you’ve bought with Proportunity, you own 100% of your home (congratulations!).”
Proportunity notes that renting has become the new normal for younger people as too many have been boxed out of home ownership due to the high cost. By combining debt with equity, Proportunity aims to make home ownership more affordable to more people. Proportunity reports that it has already helped £100 million in property sales and their goal is to aid one million homeowners by 2030.
While the deal is yet to launch live and thus terms are not public, Proportunity/Seedrs is currently accepting emails for early access.
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