Integration can help brokers find solutions for first-time buyers
Mortgage Broker Tools (MBT) has integrated its MBT Affordability research platform with Even, a new lender offering second-charge equity loans to first-time buyers.
The exclusive integration provides brokers with a simple way of seeing 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.
“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,” Tanya Toumadj, chief executive at Mortgage Broker Tools, said.
“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,” Toumadj said.
James Turford, co-founder and chief operating officer at Even, said that the lending company is ready to help brokers solve the problem of restricted affordability 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,” he said.
