"We’ve designed a product to help first-time buyers who are restricted by either salary or deposit size, and don’t have access to the ‘bank of mum and dad’."
This exclusive integration enables brokers to see whether their first-time buyer clients could achieve the loan size they want with the help of an interest-free shared equity loan.
Even can lend up to 20% the value of the property to buyers who have saved up a 5% deposit. No interest is payable for the entire term of the loan, up to 35 years. The Even equity loan includes several features designed to make it fair for customers — such as no ERCs and a profit cap on Even’s share of any increase in value.
The integration means that when brokers carry out an affordability request, eligible cases will show the results of how much a client could borrow if they were to combine a shared equity loan from Even, with a standard first-time buyer mortgage.
Tanya Toumadj, CEO at Mortgage Broker Tools, said: “The latest MBT Affordability Index shows that on 30% of first-time buyer cases there is currently no lender able to meet the loan size requested by the borrower. And it’s in these situations that a lender like Even can help – providing an interest-free equity loan to help first-time buyers achieve their goals.
“One of the great things about a technology platform like MBT Affordability is that it can make it so easy for brokers to research different types of solutions that could benefit their clients. With a simple click of a button they can compare, not only how much their clients could borrow from first charge lenders, but also how this loan size could be extended if they were to combine it with an equity loan taken as a second charge in this way.
“This enables brokers to add more value to their relationships and will help more buyers to buy the home they want. We’re really pleased to work with Even on this integration and we are sure it will prove a popular addition to the MBT Affordability platform.”
James Turford, co-founder and COO at Even, said: “Our mission is to end homeownership inequality. To that end, we’ve designed a product to help first-time buyers who are restricted by either salary or deposit size, and don’t have access to the ‘bank of mum and dad’. We can lend up to 2x their deposit through a second-charge, interest-free equity loan, and share the profit (or loss) when the homeowner pays us back. Restricted affordability is a huge obstacle for first-time buyers. We’re looking forward to helping brokers solve this key issue for their customers and are really excited to be partnering with MBT to give the thousands of brokers who use their tool a new solution for the first-time buyer market.”
