Obviously as a part of building equity they plan to support you over a 10 year period and take a fee out of the first loan.
While i may appear gullible, the whole principle seems sound, but i just have concerns about the conflicts of interest amongst those involved.
The whole principal sounds quite horrific from where I'm sitting. I'd definitely be looking for a way out of this.
It kind of sounds like they're organizing the finance for you, so there's no real independent advice there. If you're using a solicitor they've recommended, ditch that solicitor and get your own immediately.
The easiest way to get finance knocked back is to not be able to afford the loan. If the financier does not believe you can afford the repayments, they're not legally allowed to lend you the money.