Kensington Mortgages and Proportunity have announced a new partnership that will see the pair work together to help first-time buyers to get onto the housing ladder.
Specialist mortgage lender, Kensington, revealed that the move will allow borrowers with a small deposit to take advantage of Proportunity’s shared equity loan scheme.
The partnership will enable borrowers with only a 5% deposit to buy a house, with Proportunity lending up to £150,000 or up to 25% of the property value. Kensington can then offer a first charge mortgage at a lower LTV, lowering the risk for Kensington while ensuring that more people can get the mortgage that they need. The combined loan will enable borrowers to borrow up to six times their salary, enabling them to buy a property up to 25% bigger than they would otherwise be able to afford.
Proportunity loans work in a similar way to the government’s Help to Buy scheme, except they are also available on existing properties and to those who are already on the housing ladder as well as to first-time buyers.
The new deal between Proportunity and Kensington will enable borrowers to get a mainstream mortgage at a lower rate of interest than taking out a 95% LTV mortgage, lowering the overall cost of their mortgage across the two rates.
Proportunity head of intermediary partnerships, Paul Lewis, commented: “This partnership is good for Kensington, good for Proportunity and, more importantly, good for the borrower.
“Kensington is known as a leader in the specialist lending market, and their forward-looking approach makes them stand out still further as a lender who will reach out to credit-worthy borrowers with real and practical solutions.”
Kensington new business director, Craig McKinlay, added: “This innovative shared loan from Proportunity fills a much-needed gap which will increase in importance as the Help to Buy scheme tails away next year.
“There is a real need to help people who only have a small deposit and don’t have the luxury of a parent or grandparent to help them onto the housing ladder or to move home, this partnership with Proportunity means we can do that.”
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