Proportunity said the product would service potential home buyers who were unable to meet the minimum five per cent deposit requirements of most mortgage lenders.
The announcement of the planned product was made at the launch of part of Proportunity’s crowdfunding campaign with Seedrs.
The lender said it wanted to help one million more people onto the property ladder by 2030.
Proportunity claimed its product would also fill the £4.4bn market gap that would be left when the government Help to Buy scheme closes for applications on 31 October this year.
The lender’s zero per cent deposit deal will be made available on any home, removing the restriction to new builds, and would be capped at £1m.
It will use AI technology to analyse millions of data points to see if a property is being purchased at or under its true market value.
Proportunity will also offer a mortgage booster loan which will offer up to £150,000 to customers purchasing viable properties.
Proportunity said the addition of a zero deposit mortgage product and the inclusion of the mortgage booster loan was its latest attempt to disrupt what it claimed was a “broken borrowing system”.
As well as the zero deposit product, Proportunity said it would be looking into a Rent to Buy offering.
The current crowdfunding campaign will be live until 30 June and the final investment will be announced in July 2022.
Vadim Toader (pictured), chief executive and co-founder of Proportunity said: “In today’s market, rising interest rates, an unaffordable mortgage, and cost of living crises are making the process of buying a home even more challenging. We are committed to becoming a trusted provider of home buying services for anyone struggling to buy the home they desire. The new products we are developing will enable buyers to overcome various barriers to homeownership. We’ve already financed over £100m of homes, helping over 260 people onto the property ladder, and we’re not slowing down anytime soon.”
Stefan Adrian Boronea, co-founder added: “With house prices in the UK increasing at such a pace, it’s more important than ever for home buyers to know which areas are currently most undervalued, so they are able to make sound and informed decisions – Proportunity can help them do that. Our Proportunity home index (PHI) enables customers to buy smarter – identifying undervalued homes and avoiding overpriced ones.”
Proportunity currently offers loans modelled on the Help to Buy scheme, interest rates vary between 5.99 per cent and 8.49 per cent, depending on circumstances and property type.