Even specialises in solutions for first-time buyers and says its interest-free deposit booster loans can help renters with small deposits or low incomes to get onto the property ladder.
Twenty7Tec said its module helps advisers find the lenders and products that are best-suited to what their customers need. Even becomes the 111th lender to join the platform, Twenty7Tec said. Other recent joiners were the bridging finance lender MT Finance and the intermediary-only specialist lender Quantum Mortgages.
Even says it can lend buyers up to two times the amount of their deposit interest-free, in exchange for a percentage of any profit, or loss, when the buyer repays Even. The loan can be repaid in full at any time, with no early repayment charge (ERC).
The Even product requires at least a five per cent deposit and applies to resale homes only.
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 per cent compared to Q2 2021. The average combined income was £55,579 over Q2 2022. The key word of course being ‘combined’.”
With the loan to income (LTI) ratios of most lenders be around 4.5x annual salary, Moss added, this would mean joint applicants need at least a £35,000 deposit, so first-time buyers would struggle to get on the property ladder. This is especially the case for sole applicants.
Moss continued: “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 (pictured), chief customer officer at Even, commented: “Access to home ownership 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.”
Even officially started lending February and is focused on pre-existing property rather than new building property.
In an interview earlier this year, Bailey said that the lender was targeting mortgage clubs and networks as well as more lender partnerships as it looks to gain market traction.
