"Our company mission is to help end generation rent, and we’ve been working on the Even equity loan for two years as the first step toward that goal."
First-time buyers can now use the Even equity loan in combination with a Kensington mortgage on pre-owned homes.
First-time buyers can purchase with a 5% deposit using an Even equity loan and a mortgage from Kensington, with no interest payments for the entire term of the loan.
Even, which first announced its launch in November last year, loans up to two times the deposit. 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.
James Turford, co-founder of Even and COO, said: “Our company mission is to help end generation rent, and we’ve been working on the Even equity loan for two years as the first step toward that goal. Today, we’re delighted to launch our innovative product with Kensington, opening the door to a whole generation of homeowners, helping them get onto the property ladder sooner.
"What has especially impressed us about Kensington was not only their amazing track record as specialist lender of the year, but also the way in which they embrace innovation, and moved quickly to follow through on the promise helping those who would otherwise have no option to buy.”
Craig McKinlay, new business development director at Kensington, said: “Kensington is delighted to be partnering with Even. Their innovative solution to help generation rent get on the housing ladder fits perfectly with Kensington’s goal as a specialist lender to help those who struggle to get a mortgage from mainstream lenders.”
