Unmortgage has agreed a partnership with Allianz Global Investors to help fund property purchases for first-time buyers through a model similar to shared ownership.
Allianz will raise funds from its institutional investor clients to support the launch of the new scheme.
Unmortgage will give borrowers with a deposit of 5 per cent or more the opportunity to gradually purchase their home on a part-own part-rent basis.
Unlike traditional shared ownership, which is restricted to new build and nearly-new homes, the Unmortgage scheme is set to be available on older properties too.
While shared ownership requires buyers to purchase large chunks at a time through a process known a “staircasing”, Unmortgage will allow borrowers to buy in much smaller increments.
Unmortgage chief executive Hugh Boyle says: “Our partnership with AllianzGI means reluctant renters, those who would prefer to own their own home will soon have a new way to homeownership, without a mortgage.
“AllianzGI’s involvement will help us unlock a new way to homeownership for hard-working families, including the millions paying rent which is covering somebody else’s mortgage.”
Allianz Global Investors head of European institutional Irshaad Ahmad adds: “AllianzGI has a track record of helping open up new markets for our clients.
“We continue to see significant institutional investor demand for the type of cash-flow matching that this partnership with Unmortgage is set to provide.”