Mortgage lender Ahauz, which boosts the deposit of first-time buyers with an equity loan, and the Tipton and Coseley Building Society have today announced a new partnership.
The partnership will allow customers to be able to get up to 25% of the property value from Ahauz as a second charge mortgage, and Tipton will offer a first charge mortgage at a lower LTV.
While customers can get a boost on their home buying budget of up to 25%, both lenders already assess affordability accounting for the two mortgages.
With the soaring cost of living and house prices adding to the never-ending challenges to save for a sizable deposit, buyers are increasingly restricted on their mortgage options and are locked out of owning a home. Many being left out of the property market are renters paying their landlords well above their potential mortgage payments.
Since launching in September, Ahauz has seen significant demand for its equity loan product especially in existing properties – the lion’s share of the housing stock. The equity loan tackles both low deposits and the limitations of what people can borrow on account of their income.
The Tipton, a mutual that just celebrated its 121st birthday, joins the incumbent Ahauz under the same goal of helping buyers to buy their new home without leaving anyone behind. Therefore, the product is also available for buyers looking to move homes.
Karthik Srivats, co-founder of Ahauz, said: “It’s fantastic to have such an established institution like the Tipton working alongside us to help a generation trapped in renting.
“We have been impressed on how Tipton perceives our equity loan and its potential to be scaled across all properties, not just new builds.
“This is already another challenging year for first-time buyers, and we hope that more lenders follow Tipton’s steps of adding to customer choice.
“The Ahauz team really looks forward to working with Tipton and our broker partners in helping as many customers to secure the home they want.”
Becky Wheeler, marketing and product manager of The Tipton and Coseley Building Society, said: “In an era of rising property prices and cost of living increases, it is ever harder for first-time buyers to raise a large deposit.
“At the Tipton, we are proud to support first-time buyers and Ahauz’s equity loan proposition is a great partnership that helps us provide lending solutions for those looking to take their first steps on the property ladder.
“We look forward to working with the Ahauz team and our broker partners offering innovative solutions to first-time buyers.”
