Property lender Proportunity raises over £100m in debt and equity

Digital mortgage lender Proportunity has raised a £105m ($150m) investment through debt and equity funding.  

Proportunity aims to help first-time and second-time buyers with low mortgage deposits borrow up to six times their income. Lending since 2018, loans are similar to those available through the UK Government’s Help to Buy scheme in terms of how much cash would-be borrowers need upfront - 5 per cent - but are available for all homes, not just new builds. 

The London-based fintech says it 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. The new funding round was led by VentureFriends, Kibo Ventures and existing investors Anthemis, Entrepreneur First, as well as UK proptech investors Amro Partners.  

The funding will help increase Proportunity's maximum loan size from £90,000 up to £150,000 per home as well as be used to grow the Proportunity team.

Loans of  £150,000 or 25 per cent of the house price sit 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. The new investment follows a £7.3m ($10m) funding round in 2020 for the London-based fintech.   

Vadim Toader, Proportunity CEO and co-founder said: “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.”