Six alternative ways to access homeownership if traditional lenders aren’t an option

A number of alternative lenders and solutions for people wanting to buy property have emerged, promising to fill the gaps left by traditional banks and government programs.

If you’re struggling to move up the homeownership ladder because you don’t have enough down payment, or you’re struggling to get a big enough mortgage for the home you want, an alternative lender might be able to help you. to help.

A number have sprung up in recent years to help people gain access to home ownership who typically did not tick the boxes of traditional banks and lenders.

Below we list six alternative providers that you can go directly to or that may be available through brokers:


Adam Ginty, head of marketing, described Ahauz’s product as a “private shopping assistance version”.

Launching in September 2021, Ahauz will lend on existing and new properties in England and Wales as long as borrowers earn a minimum income of £25,000.

Ginty said there was a growing number of lenders accepting the Ahauz loan as part of a borrower’s deposit.

The loan has a rate of 6.99% which is fixed for five years before reverting to a standard variable rate. There are no prepayment charges (ERC) and borrowers can refix if they wish.

Repayments are made on an interest-only basis and borrowers must demonstrate how they will repay the loan that matches the term of the mortgage.

Ahauz does not lend against buy-to-let, multi-occupancy homes (HMOs) or semi-commercial properties.

It will lend up to 25% of a property’s value and borrowers must put down a minimum of 5%.

If the value of a property changes, the value of Ahauz’s share fluctuates accordingly.


Even aims to serve first-time buyers who do not have a carer and would prefer to buy a second-hand home in England or Wales.

Launched last year by Matt Robinson and James Turford, co-founders of the real estate agency Nested, it is a second lender that offers interest-free equity loans. (See’s Second Charge Mortgage Guide for more information).

He describes his loan as similar to Help to Buy, but is only available on used properties. Even can provide loans of up to twice a buyer’s deposit up to a maximum of £100,000.

Even does not charge interest because in exchange for the loan, he owns a stake in the property. The share changes with the value of the property and is taken into account once the loan has been paid off.

Even caps the profit made on its share by twice the amount of the original loan if it is repaid within 10 years. The limit is increased to three times if the loan is repaid after 10 years.

There are no prepayment charges. The owner also retains any added value resulting from structural renovations.

It has a private funding facility to issue loans. This is secured for the customer, so the loan is protected should anything happen to the business.

Even is currently working with Kensington Mortgages as a tier one lender to offer his loan and hopes to partner with more tier one lenders to expand the choice.

The term of the loan corresponds to the first mortgage and each month the customer repays a portion of the principal loan amount.

It does not accept people with adverse credit, Individual Voluntary Agreements (IVAs) or County Court Judgments (CCJs). It requires borrowers to have a minimum 5% deposit and be in the market for a mortgage worth 4.5 times their income. The minimum income allowed is £20,000 and the first mortgage must be between 75% and 90% LTV.

Even’s contribution combined with the customer’s deposit cannot exceed more than 25% of the value of the property.

Home Generation

Generation Home is a mortgage lender that was started by husband and wife Will Rice and Sophia Guy-White last year through the Legal and General Mortgage Club. It should be available to all brokers this year.

It offers a product like the Joint Borrower, Sole Proprietor (JBSP) mortgage that allows a homeowner’s family and friends to act as guarantors and make optional payments for a mortgage.

People who join the mortgage can choose to stop making payments at any time and can opt out before the end of the term.

It also offers “purchase assistance” which allows people to contribute to a borrower’s deposit in exchange for equity.

When the property is resold, Generation Home acts as an agent to give everyone their share.

The company is backed by institutional funding, including NatWest.

It recently launched 95% loan-to-value (LTV) products with rates starting at 3.78% for a two-year solution with a fee of £999.

Generation Home accepts employed and self-employed borrowers, those who receive pension, rental and investment income as well as commission or overtime.


Proportunity is an intermediary-only lender run by co-founders Vadim Toader and Stefan Boronea.

It offers co-ownership second mortgages aimed at increasing borrower deposits up to 95% of the LTV of a first mortgage loan when combined.

It has a Proportunity Home Index (PHI) algorithm to help buyers find properties that are “fairly priced or undervalued”, and these are the homes it will lend against.

It is designed to be similar to the government purchase assistance program, but with fewer restrictions. Loans can be used on existing homes as well as new construction, and borrowers don’t have to be newbies. They will own 100% of their home.

The interest rate of the loan varies between 5.99% and 8.49%, depending on the circumstances and the type of property.

He said his rate was comparable to Help to Buy taking into account the condition that the government program loan does not need to be repaid for the first five years.

“That said, our cost should be compared to the premium a customer pays when purchasing new construction,” Toader said.

Proportunity can lend up to six times income with a 5% down payment.

It accepts people with good credit ratings who are either employees, self-employed, or key workers.

It was launched in 2018 and its debt fund includes a range of private and institutional investors. It recently expanded its funding facilities to be able to loan out £100m by the end of 2023.

Company growth and salaries are funded by venture capital partners while debt financing lines are used exclusively for loans from institutional lenders such as asset managers and commercial banks.

The term of the loan matches the term of the main mortgage and has a fixed rate for the first five years. Customers can repair after five years.

The monthly payments relate only to interest. If the value of the property increases or decreases, the buyer and Proportunity share the gain or loss.

It cannot be used to buy-to-let or buy-to-let homes (HMOs), but it allows tenants and borrowers to have buy-to-let investments in the background.

Proportunity accepts old and new buildings, apartments and houses. It will manage all properties through its proprietary technology to assess its “creditworthiness”. If he finds that the property is clearly too expensive, he will not lend.

It also does not lend on properties sold at auction, “cash only” homes or condominium properties.

Back home

Wayhome aims to cater to ‘reluctant tenants’ who can afford mortgage payments but are unable to raise a down payment.

It is a progressive home ownership proposition, similar to co-ownership, which allows customers to increase their equity in a property from £50 at a time.

Marketing manager Cal Graham said: “Obviously if you’re only buying £50 of your house your rent won’t come down much. The idea is that if you have a work bonus and you have a few thousand pounds, you could put it in your house.

Wayhome acts as a cash buyer for a property and then charges the client the market rent on the share they own. Borrowers pay legal fees, stamp duty and survey fees depending on the share they own.

Any additional shares purchased will be valued at the current home price and Wayhome does not charge a stair fee.

It also shares maintenance costs with the tenant based on their share, which means that for a house where Wayhome has a 90% stake, it pays 90% of the repair costs.

Borrowers with a household income between £24,000 and £140,000 will be considered and lend to people aged 21-55.

Deposits between 5% and 30% are required for a minimum value of £7,500.

It will lend on houses or flats worth between £150,000 and £500,000 but excludes new build.

It does not accept borrowers with adverse credit, but it considers those who are self-employed with one year of accounts. It is also Sharia compliant.

Wayhome will only buy homes where it can make a 4% return on rent. It caps the amount it allows landlords to pay in rent to keep it affordable.

She is preparing to build relationships with brokers to distribute her product.


Tembo is a mortgage broker led by co-founder and owner Richard Dana. It acts as a marketplace for family mortgages, equity loans, and progressive homeownership programs. as well as traditional mortgages and protection.

It will connect customers to alternative routes to home ownership, including Proportunity, Ahauz and Wayhome.

Additionally, due to interest from Mortgage Advisors, it recently launched a platform to partner with Independent Financial Advisors (IFAs), Brokers and Stock Release Providers to place cases that have been declined due to affordability or deposit issues.

Dana said, “Our partners prefer not to advise on these products given the time and complexity of their organization. If they can arrange three standard mortgages at the same time as it takes to coordinate a complex family mortgage or equity loan, for many mortgage advisers it simply makes more financial sense to refer to a specialist and share the committee.

Tembo raised its initial investment from Founders Factory, a digital venture capital investor. It has since raised a £2.5m investment directly from Aviva Group.

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