London-based Unmortgage has raised a £10m Seed from a host of FinTech investors.
The startup aims to launch in 2019 to help first-time buyers get on the property ladder.
Unmortgage offers a co-ownership model, meaning buyers put down their deposit and partners buy the rest of the property. As buyers’ ownership increases, their rent payments decrease.
The company says on its website that fees are paid entirely by partners.
Speaking to TechCrunch’s Steve O’Hear, Ray Rafiq-Omar, the founder and CEO, said:
“Unmortgage enables everyone to live in the home they want to, that’s our mission.
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“We do that by allowing people to buy as little as five percent of a home and rent the rest. So there’s no mortgage involved, hence the name Unmortgage.”
The startup drew investment from Anthemis Exponential Ventures and Augmentum Fintech plc.
”We’re grateful to our investors for believing in us and our social mission and excited to be working with them – especially Tee Pruitt [of Anthemis], who was instrumental through much of this process,” Rafiq-Omar added.