"Even offers an interest-free equity loan to boost deposits and those affected by LTI constraints."
Even has added its mortgage range to the Twenty7tec SOURCE module and its products and criteria are now available to all users of the platform.
Even's interest-free deposit booster enables first-time buyers with either small deposits or incomes to get onto the ladder. Even can lend buyers up to 2x their deposit interest-free, in exchange for a percentage of any profit, or loss, when the buyer repays Even. With Even, the borrower can repay the loan in full at any time, with no ERCs.
The product contains features designed to make it fair such as profit caps and no interest for the duration of the loan - keeping the borrower's monthly costs affordable.
Nakita Moss, national account manager at Twenty7tec, said: “Looking at our data from our INSIGHT Module, the average property value in Q2 2022 for first-time buyer searches was £286,217 up 14% compared to Q2 2021. The average combined income was £55,579 over Q2 2022. The key word of course being 'combined' and with most lenders' LTI being circa 4.5 x annual salary, this would leave joint applicants requiring at least a £35,000 deposit, making it incredibly difficult for first-time buyers to get on the property ladder and not to mention the increasing difficulty too for sole applicants.
"New lenders like Even are encouraging to see, offering solutions to first-time buyers to help them make that important step in their lives. Even offers an interest-free equity loan to boost deposits and those affected by LTI constraints. We are delighted to be working with the Team at Even to bring new solutions to our platform, allowing intermediaries to identify the best solutions for their clients."
Ben Bailey, chief customer officer at Even, added: “Access to homeownership is one of the biggest inequality drivers in the UK, and something we’re working hard to solve for at Even. We made Even to help first-time buyers without the luxury of the bank of Mum and Dad to get out of renting and into their first home. We’re excited to be partnering with Twenty7Tec to offer brokers on their sourcing platform to identify great solutions for their clients - and helping more people onto the ladder.”
