Jeremy Leaf & Co in North London and Edward Ashdale in South East London are among the estate agents selected for the trial with Proportunity.
The Proportunity Loan enables aspiring homeowners to purchase property with a 5% deposit, and is not exclusively for first-time buyers.
With around 85% of those currently renting wishing to buy, the Proportunity loan aims to provides an enhanced chance of doing so, and can be applied to both new and second-hand properties.
The loan sits alongside a mainstream lender’s loan, and can be used to secure a better interest rate on the main mortgage as the loan-to-value (LTV) is reduced.
The Proportunity loan enables the buyer to get financing for up to six times their annual income.
A recent example in London showed that a buyer, by using the Proportunity product, was able to increase his purchasing ability from £240,000 to £300,000.
The Proportunity loan has previously only been available via a limited number of mortgage brokers, but following the securing of another £100m for lending purposes, is now being extended through the estate agency sector.
Jeremy Leaf of Jeremy Leaf & Co, said: “We are very much looking forward to joining this interesting pilot and offering our customers the chance of owning a property which they might not otherwise have been able to afford.”
Sam Samuel of Edward Ashdale, added: “We’re honoured to have been invited into such an exciting pilot scheme.
“There are hundreds of would-be buyers in the market who find themselves just short of being able to finance the purchase of a property and we believe this idea offers a great solution.
“Makes absolute sense to us and we’re looking forward to providing this product to prospective buyers who find themselves just short of reaching their first property or even bridging the gap for some to get their dream second home. Proportunity it certainly is!”
Vadim Toader, Founder of Proportunity, said: “We are incredibly excited to partner with Jeremy Leaf & Co and Edward Ashdale to distribute our solution to the thousands of buyers that need it to afford the homes they want.
“This should help the agencies as well as more people will be able to convert from window-shopping to putting their feet on the living room table, and sooner.”
