UK-based mortgage lending startup Generation Home has raised $1.3bn in debt financing from Waterfall Asset Management, Bloomberg has reported.
Generation Home will use the proceeds to lend more to first-time home buyers, the publication said citing the firm’s statement.
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Barclays Bank will partially provide the funding.
Husband and wife Will Rice and Sophia Guy-White founded Generation Home in 2019, which counts PayPal Holdings co-founder Peter Thiel, and Tom Blomfield, co-founder of challenger Monzo Bank among its backers.
Rice said: “Capital accumulation is the greatest challenge faced by young people, who struggle to get onto the property ladder while saving for their retirement.
“The additional funding provided by Waterfall is a vote of confidence in an industry starved of innovation, and will directly help thousands more aspiring homeowners realise their dream.”
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By GlobalDataGeneration Home seeks to transform the housing market by allowing the homebuyer to add a family member to increase the credit limit.
They can also take a stake in property by helping in the repayments and be on standby.
In June 2021, Generation Home raised $30.4m in a Series A funding round led by Thiel’s Mithril Capital.
Last year, the mortgage lender also secured £300m ($402.67m) of debt financing from NatWest Markets.
The announcement comes at a time when house prices in the UK have witnessed their strongest year since 2006.
Citing Nationwide Building Society, the publication said that the average price of a home rose 1% to £254,822 in December 2021.
