Proportunity, a fintech mortgage lender, has unveiled the hidden gems in Birmingham (as determined by the Local Authority District) that first-time buyers (FTBs) might be missing out on purchasing, with properties in the Longbridge & Rubery wider area having the highest potential value. With property and rent prices on the rise and an increase in interest rates on mortgages looming, it seems that yet again, first-time buyers are the hardest hit in the current property marketplace. Traditional house price index models potentially leave buyers in the dark by not showing the hidden gems where first-time buyers could be buying.
Areas recommended include:
- Longbridge & Rubery
- Olton Station
- Kings Heath
- Yardley Wood
- Sutton Coldfield
The list is created using Proportunity’s potential home value data, which looks at factors including property undervalue, anticipated area growth and others. The Birmingham area in this analysis is defined by the Birmingham Local Authority District, and excludes neighbouring areas such as Solihull, Sandwell and others.
Proportunity utilises machine learning technology that helps identify both fair and undervalued homes in high potential growth areas, de-risking lending and removing the need for a large deposit. Properties that have been selected via this innovative technology have registered returns that are 50% better per year than the UK house price index (HPI).
The property market tool can check any home value in order to understand if a buyer is paying fair market value, getting a bargain or at risk of being overpriced compared to similar properties in that local area. It evaluates over 150 factors, such as crime and unemployment rates, ranking of local schools and accessibility to public transport, plus many more factors that contribute to the desirability of property for buyers. It then accurately identifies homes and up-and-coming neighbourhoods that are excellent value for money. Once a buyer identifies a future home, Proportunity can then offer an equity loan against its price, enabling buyers to secure the best property they can get.
Vadim Toader, Proportunity CEO and co-founder said: “Proportunity is about finding a buyers’ opportunity in the property market. It used to be that buying a home was an essential step towards a financially stable future. However, there is a £100-200K gap between what buyers want (and should be able to afford) and can afford, mainly caused by the maximum Loan to Income ratio restrictions and high deposit requirements.
It can be challenging for first-time buyers to identify which area to live in, especially when it comes to big cities like Birmingham, where pockets in the same area can have such wildly differing prices. We have crunched our data to identify which areas of Birmingham have the highest potential value for future owners to help them narrow down their choices and make the best decision for their long-term future.
In a market of fast-rising house prices, first-time buyers and those wishing to progress on the property ladder face a losing battle. Proportunity provides a solution which closes the gap and helps buyers afford the property they want in the communities where they want to live.”
Proportunity loans are similar to those available through the UK Government’s Help to Buy scheme but are available for all homes, not just new builds. They enable buyers to afford homes with only a 5% deposit, reducing the amount they need in savings. The Proportunity equity loan of up to £150,000 or 25% of the house price sits on top of the maximum mortgage that can be secured from a mainstream lender, enabling a buyer to borrow up to six times their income level, compared to traditional methods which allow borrowing of up to 4.5 times the income level. This additional financial leverage closes the significant gap between what many UK borrowers can secure from a mortgage and the cost of a home they wish to purchase.
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