London startup Proportunity has received debt capital injection of up to £7.5m to fund more loans to first-time buyers.
The company offers equity loans of up to £90,000 to first-time buyers with at least 5% deposit.
Vadim Toader, chief executive and co-founder of Proportunity, said: “When the pandemic hit, we were able to leverage our property market technology to quickly adapt lending decisions, increasing our portfolio’s resilience and continuing to issue loans, where others lenders were forced to pull back mortgage products or put lending on hold entirely.
“That’s made us the only 5% LTV lender in the UK. Our number of loans has since grown exponentially, and we’re expecting to double our lending book every quarter for the next 6 months. I want to personally thank Conister and their team, including Kai, for believing in us. Without them, this would not be possible.”
Most of the new debt funding came from Conister Bank.
Douglas Grant, director of Conister, said: “Conister aims to support aspirational and high-impact businesses in a time where other players have retrenched and borrowers need liquidity the most.
“The UK’s SMEs have shown an incredible amount of adaptability and resilience in the face of changing consumer behaviour as a result of the COVID-19 pandemic, and we are pleased to be able to support Proportunity as it seeks to positively contribute to the dynamics of the UK housing market following the lockdown and to help its customers realise the dream of owning their home.”
Proportunity has hired Marita Cavalcanti (ex-OakNorth, Ebury and Nomura) as its chief financial officer, launched a new intermediaries platform and joined Tech Nation’s latest Fintech cohort.
This post has originally been featured in Property Wire.