Its member firms gain access to the lender's interest-free equity loan
Paradigm Mortgage Services has announced the addition of Even to its lender panel, providing its member firms access to the lender’s interest-free equity loan for first-time buyers.
Available on second-hand properties only and not on new-builds, Even can lend up to two times the client’s deposit, interest-free, up to a maximum of £100,000.
The borrower pays no interest on Even’s loan for the entire term. Instead, Even shares in the increase or decrease in the property’s value at sale, or repayment. Borrowers can repay Even at any time, with no ERCs.
Richard Howes, director of mortgages at Paradigm Mortgage Services, said the industry needs to come up with its own solutions in order to help first-time buyers secure a place on the property ladder as the government’s Help to Buy scheme comes to an end in March 2023.
Read more: What will fill the void left by the Help to Buy scheme?
“Bringing Even on to our panel provides our advisers with access to one such product, this time for non, new-build property – an area which has not tended to be focused on as much, but one that is clearly required,” Howes added. “Even is focused on supporting advisers to help them explain the potential uses for this product and the types of borrowers it might be suitable for.
“We’re looking forward to working with the team at Even and to ensuring our member firms are aware of the potential solution on offer.”
Ben Bailey, chief customer officer at Even, stressed their desire to solve what they consider as one of the biggest inequality drivers in the UK – access to homeownership.
“With rising inflation and the cost-of-living increasing, getting on to the ladder can feel out of reach for a lot of first-time buyers,” he said. “We’re excited to be working with Paradigm, giving their brokers access to our product and supporting more people into their first homes.”
