Unmortgage, a London, UK-based proptech startup, raised £10m in funding.
Backers included Anthemis Exponential Ventures, and Augmentum Fintech plc.
The company intends to use the funds to expand operations and finance the part of the homes it purchases.
Led by co-founder and CEO Ray Rafiq-Omar, Unmortgage provides a solution for people who can afford to rent but want to own home to enjoy home ownership with a 5% deposit.
The system works by buying home together with the client, with a 5% deposit. This does not represent a loan or a mortgage but a co-ownership model.
The client can buy buy more of the home every month (up to a maximum 5% of the property value each year) and as the ownership share increases, the rent decreases, and decides when and how they want to exit – including rolling over to a mortgage.
Unmortgage’s fees are paid entirely by the partners the company works with.