Vadim Toader, Property expert and CEO of neo-lender Proportunity gives his view on 2022:
“As much as this figure was positive for 2021, finance is still going to remain a huge challenge for many first-time buyers in 2022, coupled with finding the right property, at the right price, in the right place. For 80% of UK first-time buyers, the reality will remain that they can’t save a big enough down-payment. Many first-time millennial buyers are limited to 4.5 times their income and their salaries are not usually high enough to take out a mortgage to cover high urban property prices.
House prices have far outgrown this equation and are 10 times the income in some of the most desirable areas, leaving a £100-200k gap between affordability and desirability.
2022 has got to be the year we keep empowering buyers to think differently and help them invest in property. Even with wages rising, property values continue to increase, as does the cost of living, making it clear that the traditional mortgage has become more and more outdated and cannot keep pace with the reality of the current market, making blended funding the only alternative option.
Our solution is to offer an equity loan that boosts buyers’ deposit savings and sits on top of the maximum mortgage secured from a mainstream lender. Essentially, it’s a combination of current wages with future equity earned from the appreciation of the property.”