Make way for one of the newest neolenders in the game: Proportunity. Industries such as machine learning and artificial intelligence are not what you would really see when trying to take out a mortgage, however, this start-up has changed the narrative.
Who is Proportunity?
Proportunity is a London-based start-up that uses technology for mortgage lending. This company pushes the boundaries of real estate by providing data-driven insights using advanced technology. It uses machine learning to display accurate house prices in developing areas and provide loans to potential buyers looking to purchase in high-growing areas.
The company has raised $150M in a mixed round and equity financing, which raised $7M on its own. This helps home buyers with a home purchase equity loan, which is available for any home. This allows them to afford a house, but only with a 5% deposit, lowering the amount required in savings.
The equity loan provided by Proportunity goes up to £150,000, or 25% of the home price, which is beyond the maximum mortgage received by a conventional lender. A mortgage of up to 4.5x of the buyer’s income can be taken, allowing them to borrow up to six times what they earn. Another up? This is available to basically everyone, from home movers and first-time buyers.
How does their Tech Work?
Proportunity allows home buyers to find their perfect home by identifying affordable homes in high-potential growth areas through artificial intelligence. It also de-risks lending and removes the need for an exorbitant deposit.
The company’s technology allows the average buyer to access the same analytical engines and information that were only accessible by the bankers on Wall Street. The use of advanced technology in artificial intelligence created a product connected to the most important decision in one’s life, purchasing a house on credit.
The men behind the Success
Founders of Proportunity, Vadim Toader and Stefan Boronea, were both featured in Forbe’s issue of 30 under 30. This duo started Proportunity back in November 2016, which can help over 40,000 first-time buyers (way more than U.K’s “Help to Buy” scheme).
The company reaches millions through its informative blogs apart from its housing statistics. This strategy allows their name to appear in anything related to mortgage in the U.K. Their guide to buying a home is a definite success for consumers.
This start-up has definite potential for expansion, as AI and machine learning will cross between real estate and consumer lending, especially for young homeowners. This will be Proportunity’s call to make an individual’s dream house become a reality.
While most people still prefer to go through agents and smell the freshly baked cookies in open house events, they would soon realize that they have more to benefit from AI solutions.