Proportunity raises over £100m to support the UK homeownership dream

By Joy Dumasia

Proportunity has raised £105m investment through debt and equity funding as it aims to support more people achieve their UK homeownership 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 funding will increase Proportunity’s 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.

Proportunity 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.

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. Properties that have been selected via this innovative technology have registered returns that are 50% better per year than the UK house price index (HPI).

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.”