The advisory firm and investment company has received applications worth more than $75 million so far, proving a hit with buyers trying to get onto the ladder.
Squirrel boss John Bolton said: "We expect that from the applications we’ve received so far, around 1 in 4 will result in a mortgage approval at some point. We can safely say that’s around 250 people or families who would likely not have been able to buy their own homes, which is a fantastic result.”
Launchpad is aimed at borrowers with strong credit profiles who are unable to afford a 20% deposit.
It consists of two loans. One makes up 15% of the value of a property, and is provided by Squirrel's P2P arm, at a fixed rate of 9.95%. The loan is paid off over five years.
The other loan makes up 80% of the value of the property, with lower rates of 2.99% to 3.99%, spread over 30 years and on interest-only terms for the first five years.
After the first five years, borrowers are left with a typical principal and interest 25-year mortgage.
Bolton hailed the innovative product, and said traditional lenders were too rigid to respond to the reality of the current market.
"We look at our clients as people, not numbers, and we're there for the ups and the downs, too," he said.
“We were recently able to help a client who needs to undergo cancer treatment. He asked us for help because his bank wouldn't let him stay on an interest-only mortgage. With stable rental income and a ton of equity in his home, we were able to give him a 7-year interest-only mortgage, allowing him to prioritise getting his health back on track."
“This is what it’s all about. We can’t go around saying we do home loans for humans without having some compassion. Actions speak louder than words.”
