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 July 18, 2019

Leading secured loan rates of 3.65%


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%.


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.


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

Get in touch

Learn More
All credit types
Rated 5.0/ 5

Smart Money Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.


Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£10,000 - £1,000,000

Representative APRC
From 7.1%

Loan Term
3 - 35 years

Loan Type
& Buy to Let

Homeowners Only
Max LTV 100%

Award winning broker of the year Smart Money have made it to the top of our list as our No 1 recommended provider for homeowner and buy to let loans. They are independent and have access to the major lenders in the market.

Representative Example

Comments are closed.

Related Products

Related guides

Second Charge Loans With No Early Repayment Charges [No ERC’s]

looking to secure a Fixed Rate on their new mortgage but don’t want to get stung by the Early Repayment Charge? Our diverse panel can offer Fixed Rate second charge mortgage products ERC Free. With potential uncertainty and looming Brexit – You can have the […]

Secured loan For Unencumbered Property [Second Charge Mortgage]

If you have a property that has no mortgage and you wish to take out extra borrowing against the property then we can help. A secured loan for an unencumbered property is an ideal solution when a mortgage from a mainstream lender is unavailable due […]

Buy to Let Mortgages With No Rental Income Stress Test Required

We are currently offering 1st & 2nd charge Buy to Let mortgages and secured loans with no rental income stress testing required from the mortgage lender. This buy-to-let mortgage product is an alternative solution for landlords whereby the rental income does not stack up or […]

100% LTV Second Charge Mortgages [Case Study]

The Problem Clients wanted to borrow a £30,000 loan to complete an extension on their end terrace property. They were 12 months into a 2 year fixed rate with the Halifax and their broker could not find a 100% LTV remortgage, the existing lender coincidentally […]

Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to