Unmortgage Raises £10M
London-based Unmortgage, a company that offers a different approach for buying a home, has raised £10m in a Seed round from Anthemis Exponential Ventures, Augmentum Fintech, and Pitch@Palace.
Founded in 2016 and expected to go live in 2019, Unmortgage offers home buyers a co-ownership model which eliminates the need to take out a mortgage. Here’s how it works: an individual can become a part owner of a home while living in it and paying rent with as little as a 5% deposit. The remainder 95% is owned by Unmortgage, which buys the home together with the individual. While paying rent, the individual can increase his/her homeownership shares, and as ownership shares increases, the rent decreases.
The service is free of charge for consumers – the company’s fees will be paid entirely by its partners. Unmortgage plans to use institutional funding to finance its part of the homes it purchases, offering in return a secure income stream and the opportunity to own residential property.