Mortgage lender Ahauz, which boosts the deposit of first-time buyers with an equity loan, has partnered with mortgage broker Tembo, continuing the expansion of Ahauz’s coverage across the country.
Since launching in September, Ahauz has seen significant demand for its equity loan product. First-time buyers continue to battle with the significant challenges of increasing house prices and restricted mortgage options putting home ownership further out of reach without support.
Buyers with smaller deposits are turning to private alternatives to Help to Buy such as Ahauz, as they seek a route from renting to home ownership but want more choice than just new builds.
Ahauz offers customers an equity loan of up to 25% of the property purchase price. This enables customers to boost their total borrowing to 6x their household income, providing first-time buyers with a wider property pool to choose from.
The government’s scheme has provided equity loans to nearly 270,000 FTBs since its launch as first-time buyers look for ways to help them to get on the property ladder and into their first home. An Ahauz equity loan opens that opportunity to the 90% of properties in England and Wales that are not available through the government’s scheme.
Karthik Srivats, co-founder of Ahauz, said: “Our partnership with Tembo is another significant step forward in our mission to empower people through homeownership. 2022 has already seen a significant step-up in interest for our product, and we expect that trend to grow throughout what is poised to be another challenging year for first-time buyers.
“We’re looking forward to working with Tembo and helping their clients to get the home they really want, by providing an alternative to the bank of mum and dad and Help to Buy. An Ahauz equity loan could be the difference needed to secure their clients the funding they need and the home they really want to buy.”
Richard Dana, CEO and co-founder of Tembo, added: “It remains frustratingly clear that most first-time buyers can’t afford to buy without additional support – our data shows that many buyers expect to pay nearly nine times their average earnings to buy a home. At Tembo, we are on a mission to change this – to make homeownership possible for a new generation of buyers. Our partnership with Ahauz helps us increase accessibility even further; meeting the needs of those customers who are struggling with affordability, but can’t use family support to get their first set of keys.
“We look forward to working with the team at Ahauz to provide innovative solutions to first-time buyers where traditional routes have failed.”
