Tipton and Coseley Building Society and Ahauz launch FTB loans

The deal will allow customers to get up to 25% of the value of a property from Ahauz as a second charge mortgage, while Tipton will offer a first charge mortgage at a lower loan-to-value ratio.

The firms say: “With the soaring cost of living and house prices adding to the never-ending challenges to save for a sizable deposit, buyers are increasingly restricted on their mortgage options and are locked out of owning a home. Many being left out of the property market are renters paying their landlords well above their potential mortgage payments.”

Ahauz launched last September and says it has seen “significant demand” for its equity loan product, which it adds helps potential homeowners with low deposits and boosts the limitations of what people can borrow on their incomes.

The firms add that the product is also available for buyers looking to move homes.

Tipton and Coseley Building Society marketing and product manager Becky Wheeler says: “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 FTBs 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.”

Ahauz co-founder Karthik Srivats adds: “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 by how Tipton perceives our equity loan and its potential to be scaled across all properties, not just new builds.

“This is already another challenging year for FTBs, and we hope that more lenders follow Tipton’s steps of adding to customer choice.”