Proportunity review

An equity loan from Proportunity could give you the funds to apply for a mortgage with a lower loan-to-value ratio, and therefore a lower interest rate.

You can apply to borrow between 10% and 25% of your desired property’s value from Proportunity, and pay a fixed rate on this interest-only loan for the first 5 years. The capital owed at the end of the loan will be equal to the same percentage of your property’s value that you applied to borrow.

The most you can borrow from Proportunity is £90,000. You must also make a contribution to the mortgage deposit worth 5% of the property’s value yourself.

Proportunity allows you to access a mortgage lender’s best rates quicker. What’s more, due to the superior mortgage rates unlocked through a Proportunity equity loan, home ownership typically works out far cheaper.

How does Proportunity work?

You can apply for a Proportunity loan on new-build or previously occupied properties. To be eligible, you must be aged between 21 and 68 with annual earnings of at least £30,000 (or £45,000 for joint applicants). You don’t need to be a first-time buyer, but the property must be your main residence.

The first step to applying for a Proportunity loan is to register with its website and upload details of your desired property. This will allow the lender to deem whether the property is eligible for you to borrow money against.

You have to apply for a Proportunity loan through a mortgage broker. The lender will recommend a range of partnered brokers after you register with its website, but you also have the opportunity to onboard your own choice of broker.

The mortgage broker will recommend and apply for a mortgage in principle on your behalf, then for your Proportunity loan afterwards.

The fixed rate offered on your Proportunity loan will differ depending on your financial situation and your choice of property.

How do Proportunity equity loans compare to Help To Buy equity loans?

You can apply for an equity loan from the government via its Help To Buy scheme, although the range of eligible properties is more limited with this scheme.

Help To Buy equity loans are only available on specific new-build properties within a specific price range. What’s more, it’s widely agreed that the eligible new-build homes tend to be overpriced by developers.

Of course, if your chosen property is eligible for a Help To Buy equity loan, you’re free to compare the overall cost of both options. Help To Buy loans are interest-free for the first five years, whereas you’ll begin paying interest on Proportunity loans immediately.

You can’t apply for a Help To Buy loan and a Proportunity loan.

Are Proportunity loans safe?

Proportunity is authorised and regulated by the Financial Conduct Authority (FCA), which means it is subjected to the same regulations as all financial companies in the UK.

Pros and cons of Proportunity equity loans

The bottom line

Proportunity provides an alternative to Help To Buy equity loans that more people will be eligible for. What’s more, it will frequently prove to be a better deal than a traditional 95% mortgage.

Frequently asked questions about Proportunity

• What properties are available for a Proportunity loan?

  Proportunity will consider new-build and previously occupied homes in England and Wales. However, it reserves the right to refuse equity loans on properties it believes won’t increase in value. You must upload details of the property to its website, so its staff can consider its eligibility.

  Proportunity won’t lend on properties sold at auction, “cash buyers only” homes or shared ownership properties. The property must be your main residence.

• How do I repay a Proportunity loan?

  Interest is charged monthly at a fixed rate for the first five years. You’ll pay a fee if you make overpayments during this period.

  After the fixed-rate period ends, your interest rate changes to the lender’s standard variable rate. You can repay the capital owed partially or fully during this period. Partial repayments must be worth at least 10% of the capital owed. The lender will only accept one capital repayment per year.

  The term of your loan will match your main mortgage. Essentially, this means you must repay your capital when you pay off the mortgage, remortgage or sell your home. The amount owed will be equal to the percentage of the home’s equity you borrowed. So, if the property has dropped in value, the lender loses money. If it has appreciated in value, you both win.

• Can I get a Proportunity loan with defaults or CCJs?

  Proportunity will refuse any applicants with defaults or CCJs registered in the last six years.

• Can I get a Proportunity loan if I am self-employed?

  Yes, but you must be able to provide at least two years’ worth of accounts showing annual earnings of at least £30,000.

• How do I contact Proportunity?

  You can email Proportunity at contact@proportunity.co or call on 020 3962 2051. There is also a live chat function on its website.