Here at Glow we’ve partnered with Proportunity to help buyers with a 5% deposit get on the property ladder and unlock more attractive mortgage options by ‘boosting’ your deposit. We are a Proportunity mortgage broker.
What is Proportunity?
Proportunity are authorised and regulated by the Financial Conduct Authority and they provide top-up loans if you have a 5% deposit to ‘top up’ your deposit, thus effectively opening the door to better mortgage options or a bigger home. In the current climate and at the current time of writing, there are very limited mortgage options available if you have a 5% deposit.
How does it work?
Put simply, if you have a 5% deposit you can borrow a minimum of £20,000 up to a maximum of £90,000 to boost your deposit on a fixed interest rate. We work out if this will be affordable in addition to your planned mortgage repayments and other outgoings.
This could be the difference between owning a one bedroom first floor flat or a two bedroom house with a garden. Or it could simply open up your mortgage options to get access to mortgage rates that you previously couldn’t qualify for with a smaller deposit.
How much can I boost my Deposit?
A Proportunity Loan can ‘top up’ your 5% deposit, boosting it up to between 15% and 30% of the property value. This gives you more choice and less compromise. The Proportunity Loan amount is up to you – up to a maximum of £90,000. (Source)
What are the restrictions for a Proportunity loan?
At the time of writing a Proportunity loan WILL NOT BE AVAILABLE in the following circumstances:
- When purchasing a Buy To Let, Shared Ownership or Right to Buy property.
- For New Build purchases over £900,000.
- When purchasing a property of non-standard construction.
- If your Gross Annual Income is less than £30,000 (single) or £45,000 (joint).
- If you have no Deposit available or will be borrowing your 5% from somewhere else.
- If the Proportunity loan required is less than £20,000 or over £90,000.
- If you (or a joint applicant) has ANY missed/late payments, defaults, IVA’s or CCJ’s showing on a credit report within the last 6 years.
- If you already have significant borrowing in place with other lenders (loans/credit cards and hire purchase agreements).
- The property being purchased must be your sole residence, i.e no mortgage due on any other residential property.
How do I get started?
If you are looking to get a mortgage with Proportunity we can broker your mortgage for you. We will advise and recommend the most suitable lender who will be able to work with Proportunity.
➡️ Firstly, download the Proportunity Brochure.
Contact our brokers when you are in a position to proceed with a mortgage application and you want to obtain an agreement in principle. An agreement in principle is the first step to work out how much you could borrow.
➡️ You can start the mortgage advice process via our live chat or call 0333 335 0023.
Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
First Published: 03/02/2021
Last Updated: 09/02/2021