Nested Founders Launch Alternative to Purchase Aid

The founders of Nested are launching an equity loan product similar to Help to Buy with plans to start lending by the end of this year.

Unlike the government-run program, buyers will not be limited to new construction.

The loans will be interest-free, with the lender benefiting instead from a capital appreciation.

The lender, called Even, was set up by founders of online real estate agency Nested, Matt Robinson and James Turford.

Robinson also previously launched the GoCardless payment fintech.

Turford and Robinson say they aim to solve two of the biggest hurdles for first-time buyers: increasing a deposit and loan / income constraints.

Even can lend up to twice a buyer’s deposit capped at a maximum of £ 100,000.

It will share either the profit or the loss depending on the evolution of house prices.

A profit cap of 2x the original loan applies if the borrower repays the amount within 10 years, or 3x the loan if the borrower takes longer.

There are no prepayment charges and the borrower retains the benefit of the structural work undertaken.

The maximum duration is 40 years.

Nested is Even’s parent company and has raised £ 45million to date.

The lender says it will focus on second-hand properties which represent 85% of first-time purchases.

The profit or loss that is shared depends on the initial contribution of both parties.

For example, a contribution of £ 10,000 from the buyer and £ 10,000 from Even means that any subsequent profit is split 50/50 upon repayment.

Turford says, “We have spent two years researching the weak spots of those struggling to get on the property ladder.

What came out loud was two things: People are tired of being stuck in the rent trap, paying off their landlord’s mortgage while being unable to save due to constantly rising rents.

“And they want a fair alternative to the state-run purchasing assistance program, which is being phased out anyway.

“He even wants to get people up the property ladder, but most of all, do it fairly.

“That is why, in addition to sharing the profit when the property is sold and not charging any outstanding interest, we will also share the loss if the property’s value has fallen on the sale.

“In addition, we have a profit cap on our share, so the owner should benefit much more than we do from large increases in value. “

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