Wayhome provides a debt-free homeownership model that allows individuals to purchase a portion of a property with a minimum 5% deposit, while funding partners cover the remaining cost. This approach enables renters to transition into homeowners without the burden of a traditional mortgage, addressing the challenge of high deposit requirements in the housing market.
Funding
$30.6M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
AXFounders
Product
Problem
Many individuals are unable to secure a traditional mortgage due to stringent deposit requirements, preventing them from owning a home. Saving a sufficient deposit can be a significant hurdle, especially in areas with high property values, effectively locking many renters out of the housing market.
Solution
Wayhome offers a gradual homeownership program that allows individuals to purchase a portion of a property while renting the remaining share from funding partners. Participants start with a minimum 5% deposit, significantly lower than traditional mortgage requirements, and pay rent at fair market value on the unowned portion. As they become ready, participants can increase their ownership stake over time through monthly payments or lump-sum investments, reducing their rental obligation accordingly. Wayhome acquires the property outright, eliminating the need for a mortgage and granting residents the freedom to customize their homes and stay as long as they like, providing a stable path to full homeownership.
Target Audience
Wayhome primarily targets individuals and families with a household income of at least £24,000 who have a good credit score but struggle to save a large deposit for a traditional mortgage.
Features
- Initial purchase with a minimum 5% deposit, starting from £7,500
- Rent paid on the portion of the home not yet owned, at fair market value
- Option to increase ownership stake monthly or via lump-sum payments, starting from £50
- No mortgage required, as Wayhome purchases the property outright
- Freedom to customize the home (paint, pets, etc.)
- Ability to stay in the home indefinitely, provided rent is paid
- Fair sharing of buying costs, such as stamp duty, proportional to the initial ownership stake
- Focus on existing properties to ensure established value and avoid new-build premiums