Help-to-buy fintech company Proportunity has raised a £2 million seed investment to drive its analytics and lending platform that offers home equity loans to first-time buyers. 

Since becoming FCA authorised in 2018, Proportunity has grown to over 5000 users and lent on properties worth over £10 million. Besides scaling its consumer base, this latest funding will help the startup grow its network of partnerships with real estate agencies and mortgage brokers.

The funding comes from Anthemis, the fintech investment fund behind eToro and Betterment, alongside Axel Springer Digital Ventures, an early stage investment unit of Europe’s leading digital publisher Axel Springer.

The start-up removes the biggest barrier to homeownership – large deposits– by providing equity loans similar to the government’s Help to Buy scheme. Raising the deposit a buyer can put down increases the range of mortgages they can apply for and reduces their long-term interest costs. 

The fintech will typically lend 15% of a property’s value meaning a buyer with a 5% deposit can secure the 20% needed for most mortgage providers. It can also help people identify good value properties in up-and-coming area through its predictive AI technology and analytics platform which act as a digital buying agent.

Vadim Toader, founder and CEO of Proportunity, said: “Home ownership has become a major social divide between those who have benefited from capital growth and those who have not. By broadening equity loans to all housing stock and by using AI to offer insights to select the perfect investment, we want to have a positive social impact that also supports both estate agents and traditional mortgage lenders.

“With the Government’s Help to Buy scheme destined to end in a few years, and further second steppers restrictions starting 2021, the UK housing market is in dire need of a private sector alternative that’s tried, tested and ready to help the next generation of homeowners.” 

Ruth Foxe Blader, managing director at Anthemis, said: “Getting on the housing ladder is a critical consideration for the majority of people and that’s why we’re thrilled to support Proportunity.

“Equally, there’s an excellent opportunity to use AI and analytics to assist buyers and better inform the market. Proportunity’s analytics platform plays a crucial role in supporting investments and in bringing a greater level of transparency to a market that can often be confusing and daunting to first-time buyers.”