Students Lettings Sales Request a Free Valuation

Are 0% Mortgages Coming Soon?

Are 0% Mortgages Coming Soon?


You may have heard about the current state of our economy and how that may affect you and your family. The Help to buy scheme is coming to an end soon, and with the cost of living ever-soaring; homeownership isn’t looking like a viable option for ordinary people anymore. 

As well as this, with inflation rising by 11.9% officially in the UK, clickbait articles and budgeting tips are swarming blogging platforms and tabloids nationally. A story you’ve likely also come across recently as well is the chance for 0% mortgages becoming a real thing with the hopes of more people getting on the property ladder and more people being able to put money back into the economy. 

So, is this a sure-fire thing? We can only hope! This is what we know so far on the legislation: 

UK London based Neo lender company, ‘Proportunity’ has recently announced through their crowdfunding campaign that they are set to launch a 0% mortgage scheme to help first time buyers with the intention of helping “at least one million people onto the property ladder by 2030.” - Vadim Toader, Proportunity CEO. 

Neo-lenders offer lending as their first product with other banking products and services integrated into the experience. 

Proportunity were able to raise £105 million in debt and equity funding last October through their crowd funder, which you’ve got to admit is pretty impressive. 

Proportunity intend to add a mortgage booster loan on top of this in the hopes that it will break the chain of ‘broken borrowing systems.’ They also intend to scrap the affordability calculator rule. 

So, when will this be available? 

Proportunity is set to launch this new pathway later this year, according to Fintech Futures. 

It isn’t known how long this will be running for, but it is known that the main aim, other than catering to a more affordable demographic, that its main aim is “to buy smarter by identifying undervalued homes and avoiding overpriced ones”. 

Could this be the future of homebuying in times of soaring inflation and stagnant wages? 

How exactly does it work? 

It shares the change in the value of each home that it lends on, which in turn gathers over 150 data points to assess the property’s growth potential. So, its success rate can be monitored and trialled carefully as it begins to take off. The analytics taken from the data will also analyse factors such as the size of each property, the crime rates that may be involved as well as transport links, socioeconomic data from Land Registry, energy performance and more.  

The company has supposedly already put practices in place to overcome barriers of homeownership, such as financing millions of homes and helping over 260 ordinary working people onto the property ladder. 

Would you consider taking a chance with a 0% mortgage? What risks do you see with it? Share your thoughts in our comments! 

By Caitlin Stimpson