Use A Second Charge Mortgage To Repay A Help to Buy Equity Loan [Case Study]

Simon Nicholson

Written by Simon Nicholson on July 17, 2018

Updated April 29, 2019

Leading secured loan rates of 3.65%

Problem

Customer wanted a £50,000 loan and wanted to use the funds to pay off a help to buy equity loan they took out 5 years previously. The good news was that the value of their home had increased significantly over the last 5 years however the bad news was that the amount of the equity loan to be repaid had increased proportionately too. Equity loan borrowers don’t pay any interest on the debt for the first five years but in the sixth they pay 1.75% interest and for each subsequent year its 1.75% plus the rate of inflation based upon the RPI, plus another 1%.

Solution

After carrying out research including a soft quotation credit search one of our advisers referred the enquiry to one of our prime lenders based upon the merits of the case.

Outcome

The lender approved the referral within 90 minutes and the customer was very pleased.

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Loan Amount
£3,000 - £1,000,000

Representative APRC
From 3.9%

Loan Term
3 - 35 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 100%

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