Finova adds new interest-free mortgage lender to panel

Finova Payment and Mortgage Services has added new interest-free equity loan provider, Even, to its lender panel.

Related topics:  Mortgages
Rozi Jones
1st March 2022
Melanie Spencer MCI
"We are delighted to be able to provide our brokers with an even more flexible range of tailored lending solutions to meet homebuyers’ specific needs."

Last month, Even partnered with Kensington to launch its Help to Buy alternative to first-time buyers.

First-time buyers can purchase with a 5% deposit using an Even equity loan, with no interest payments for the entire term of the loan.

Instead of paying interest, Even shares the increase or decrease in the price of the property at the point of repayment, either through sale, or in smaller chunks.

The share is calculated based on the initial contribution of both parties. For example, a contribution of £10,000 by the buyer and £10,000 from Even means any subsequent profit is split 50/50 on repayment.

Even offers no interest for the whole term and shares in the profit or loss at repayment, and the homeowner keeps the profit from any structural works undertaken.

It features a profit cap for Even of 2x the initial loan if paid back in 10 years, or 3x thereafter.

Finova Payment and Mortgage Services, which rebranded from MCI Mortgage Club in November 2021, now has a panel of over 70 lenders, offering products ranging from standard mortgages to specialist and niche lending, including residential, buy-to-let, bridging, second charge, commercial and development, and equity release.

Melanie Spencer, head of Finova Payment & Mortgage Services, commented: “We are seeing more and more people struggling to take their first step onto the property ladder. By partnering with an equity share provider like Even, we are delighted to be able to provide our brokers with an even more flexible range of tailored lending solutions to meet homebuyers’ specific needs.

“With Even’s proactive approach to helping aspiring homeowners balance their budgets, we are confident today’s partnership will deliver invaluable returns for our advisers. This is part of our unwavering ambition to provide brokers with all the tools they need to grow their business and increase client engagement.”

James Truford, co-founder and COO at Even, added: “We look forward to working with Finova Payment and Mortgage Services to fulfil our mission of helping tired renters get their foot on the property ladder and achieve their ambitions of becoming proud homeowners.

“We are excited for Finova’s impressive club of brokers to have access to our products and begin assisting more borrowers getting on the housing ladder. Both the brokers and their clients will benefit from the high service standards and strongly customer aligned outcomes in which we specialise at Even.”

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