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.
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.”
Generation 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.