Source: Pagefield/Abound
AI-powered credit technology company Abound has entered the mortgage market with the acquisition of Ahauz, a tech-driven mortgage lender specialising in shared equity mortgages.
Under the deal, Ahauz will continue to operate with its specialist focus, while benefiting from Abound’s capital and technology – which uses AI to “X-ray” a customer’s Open Banking data with their consent, to assess affordability more accurately than traditional credit scores.
The acquisition is designed to offer home owners a suite of products providing improved access to borrowing and more flexible mortgage and loan options designed to reflect real household needs.
Abound’s first home owner product called Rezide Equity Loan – a Help to Buy-like Equity Loan product launched in partnership with housebuilders Barratt Redrow, Persimmon and asset manager QSix – has gone live, and is a private version of the now-defunct UK Government-backed Help to Buy scheme.
The product provides a loan worth 15% of the value of property on the market, to help prospect buyers towards the typical 20% deposit. The loan carries a 4% interest rate, is repaid alongside the main mortgage, with the balance settled in full if the property is sold or refinanced.
Gerald Chappell, CEO of Abound
Earlier this year Abound revealed it had lent more than £1 billion less than five years after launching, becoming one of the fastest growing consumer lenders.
Gerald Chappell, chief executive officer and co-founder of Abound, said: “From the second we first met the Ahauz team, it was clear that we shared a vision for how lending to homeowners could work so we’re absolutely delighted to welcome Ahauz into Abound.
“Their track record in shared equity lending and technology makes them a perfect fit for our vision of reshaping consumer finance. Together, we’ll deliver more innovative products that expand opportunities for homebuyers and homeowners across the UK.”
João Rocha, chief executive officer and co-founder of Ahauz said: “Joining forces with Abound is an exciting step for Ahauz. Our mission has always been to unlock home ownership for customers in a smarter, fairer way. With Abound’s AI-driven technology and resources, we can scale our impact and bring new solutions to market more quickly.”
Watch on demand: The aggregator advantage – Combining data to power automated lending decisions
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