Fractional property buying company enters deal with AllianzGI for £500M

Fractional property buying platform, Unmortgage has a goal to help people buy their new homes without having to go through the same hoops that a traditional mortgage usually asks for.

Unmortgage has recently announced a partnership with Allianz Global Investors (AllianzGI) to create a new fund to purchase properties offered through the platform. According to TechCrunch, this fund is worth £500 million and while the deal was announced today, it was actually signed at some point last year.

The news comes after Unmortgage’s CEO and Co-Founder Rayhan Rafiq-Omar left the company in early June.

London-based start-up Unmortgage was set up in 2016, with the objective of helping people buy homes even if there were many obstacles between them and a traditional mortgage.

With the slogan “buy your home gradually, live in it now”, Unmortgage allows customers to purchase a minimum 5pc of a house (this can cost no less than £12,500) as long as they have an income of £30,000 before tax. The remaining percentage (in this case, 95pc) of the house is bought by one of Unmortgage’s funding partners.

The customer then lives under a part-rent, part-own deal, where the rent is determined by average prices in the locality. The percentage that they own is deducted from each month’s rent. For example, if average rent for similar properties in the area was £1,000 per month and the renter owned 10pc of the property, their monthly rent would be £900.

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