Proportunity, an online startup lender, has confirmed a debt capital injection of up to £7.5m.
Proportunity, an online startup lender, has confirmed a debt capital injection of up to £7.5m.
Proportunity, which is the only 5% deposit lender, has detailed that the funding stream stems from Conister Bank.
This fund will go towards managing record demand following Britain’s post-lockdown housing boom, according to the lender.
In addition to the debt capital injection the firm has hired Marita Cavalcanti as chief financial officer, launched an intermediaries platform and joined Tech Nation’s latest Fintech cohort.
Cavalcanti joins from OakNorth Bank and will be in charge of expanding the lender’s debt capital by drawing in more institutional money towards Proportunity’s lending fund.
The lender provides homebuyers with an equity loan of up to £90,000, which enables them to purchase a property with an 5% cash deposit.
As a result of high demand, the digital mortgage lender has had to implement a waitlist and a £90,000 cap on newly issued home equity loans.
Proportunity outlined that it onboarded over 200 new intermediaries during the previous quarter.
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 six months.
“I want to personally thank Conister and their team, including Kai, for believing in us.
"Without them, this would not be possible.”
Douglas Grant, director of Conister, added: "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."
