UK-based Wayhome has raised £8m in Series A funding led by existing investors Allianz X and Augmentum Fintech.
The round also featured additional support from new backers Volution, Love Ventures, and Cur8 Capital, according to Finextra.
Wayhome’s model provides a unique home ownership option for those struggling to buy a home outright in the current UK property market.
Through its part buy, part rent scheme, users can secure a home with a deposit as low as five percent.
The model allows participants to own a portion of a property while paying rent on the part they don’t own, offering a flexible path to increasing ownership over time as they buy more of the property with additional payments.
The new capital injection will enable Wayhome to further its growth in the UK property market and build more partnerships with mortgage brokers and lenders.
The company’s immediate goal with this funding is to reach profitability, capitalising on an expanding market of potential homeowners seeking alternatives amidst rising interest rates and the phasing out of government support schemes.
Wayhome’s offering has gained traction following the discontinuation of the government’s rent-to-buy scheme.
CEO Nigel Purves noted that demand has been heightened due to rising interest rates, which have made traditional home financing less accessible for many. “The rising interest rates seen since September’s controversial mini-budget have delivered even greater demand for our product,” Purves said. “This significant raise will fuel our ambitions to double the pace at which we can help new homeowners within 12 months. Homebuying has been somewhat traditional for centuries. Our alternative is the best of all worlds as a part buy, part rent proposition that allows our customer to buy their ideal home, in their ideal location, today without waiting for years.”
This round follows Wayhome’s earlier funding efforts, which helped establish its innovative approach within the UK’s competitive property market.
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