In this article on even mortgages, we will explore the concept of an even equityThe difference between the value of the property and the amo... loan and how it can be used to reduce your monthly payments. We will answer frequently asked questions such as what is even equity loan, how it works, how much an Even Equity Mortgage cost, is the loss always shared in such mortgages etc.
What is Even?
Even is a brand new type of mortgage product aimed at helping first-time buyers onto the property ladder, it offers help-to-buy style equity loans. These are interest-free equity loans.
Even is a private company, rather than a government body, so they may offer better deals than the Government’s Help To Buy scheme. They also charge lower interest rates than the Government’s scheme.
However, we would recommend checking out the Government’s scheme before signing up with Even. You may not qualify for either scheme, depending on your circumstances.
How does Even work?
You can borrow up to twice the deposit amount, which could be up to £100,000 if you choose to take out an equity loan. However, the minimum amount you can borrow is £7500.
The money you receive from Even is referred to as an equity loan. An equity loan is a loan which is tied to the current value of your home.
However, if the market value of your property increases, you may need to Even back more money. An Even Loan is fairly similar to an Appreciation mortgage.
How We Work
1: We contact you and take down your details, income outgoings, name, address etc.
2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.
3: You upload the documents and information needed via our channel our online portal.
Who can Even Equity Loan help?
For example, if you want a 90% mortgage, but only have 5% saved, Even Equity Loan can lend up to 2x of your original loan.
Usually, the even mortgage product helps out first-time buyers who are struggling to get on the property ladder, especially with many being priced out of the property market. Even can boost a first-time buyer’s budget by up to £100k or 2x their deposit.
The property must be your primary residence, this type of mortgage is called a second charge mortgage.
As a second charge mortgage, Even’s equity loan is also secured on your home, but only on the part that is left over after the first charge has been settled.
The property must be mortgageable – mortgage lenders must be willing to sell you a mortgage on the property. Even does not do mortgages for properties such as new build homes, holiday lets and properties used for corporate purposes.
How much does Even Equity Loan cost?
The cost of Even Equity Mortgage depends on many factors such as your age, deposit amount, credit score etc. At the time of writing the article, there was an application fee, loan completionThe point at which a property purchase is finalized and owne... fee and monthly repayments. The loan application fee is fixed at £49 which will cover all the compliance and identity checks on the buyer and the property. In addition, the loan completion fee is 5% of the equity loan value.
For further details, you need to contact an expert equity mortgage broker.
How much money do I need have to pay Even Back when I sell my home?
The Even Equity Loan is similar to the shared appreciation mortgage (SAM) in that it allows you to borrow against the increase in the value of your home. For example, if you contribute £30,000 as your deposit amount, Even Mortgage also contributes £30,000. Even will then have a 50% share in the increase of the property value of your home. If you want to understand it in more detail, you may need to contact a specialist mortgage broker.
Is the loss always shared with Even Equity?
No, if you pay back the mortgage before the six years term without selling, the loss will not be shared and as a borrower, you have to pay the complete amount of the outstanding Even Mortgage.
How We Work
1: We contact you and take down your details, income outgoings, name, address etc.
2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.
3: You upload the documents and information needed via our channel our online portal.
What is the interest to pay on an Even Equity Mortgage?
This type of equity loan is interest-free, you need to pay the monthly repayments of the mortgage. However, if you default on any payments, the lender can repossess the property and sell it off.
If you want to know how much you’ll pay per month, you should talk to a professional mortgage advisor.
Next Steps – Even Mortgages
Getting the Even Mortgage needs a lot of work, so we recommend getting help from a professional mortgage advisor. They will guide you through the process and ensure you get the best deal possible.
You can always get help from our specialist mortgage broker services, all you need is to call at 07391 510126
About The Author
Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.
He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.
Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.
At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.
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