The partnership will allow customers to access up to 25 per cent of their property value from Ahauz as a second charge mortgage, and Tipton will then offer a first charge mortgage at a lower loan to value (LTV).
This will allow customers to boost their homebuying budget. The companies said that with cost of living and house prices continuing to rise buyers were increasingly struggling to save a deposit and could be left out of the property market.
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.”
He said that this was a “challenging year” for first-time buyers and it hoped more lenders followed Tipton’s suit in improving customer choice. He added that the team was looking forward to working with Tipton and Ahauz’s broker partners to help more customers.
Becky Wheeler, marketing and product manager of Tipton, 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.”