If you purchased your home with an equity loan from Peabody you may have questions about arranging a new mortgage or redeeming the loan.
We hope to have answered some of the most frequently asked questions below but if not, get in touch with us today.
How can I repay/redeem my equity loan?
You will need to repay your equity loan when you move and sell your home. You can also choose to repay your loan at any time before this, perhaps when you are remortgaging.
Some equity loans must be repaid by the 25th anniversary of when it was given. These tend to be equity loans that were issued from 2008 onwards, but not all. The details will be in your equity loan document.
Some equity loans allow you to repay part of the loan and, if so, you might be able to repay it in tranches of 10% of the value of your home. If your loan agreement allows you to do this there are some limitations, including a minimum 10% that must be unpaid if you do not repay all of it. For example, if you have an equity loan of 28%, and your loan agreement states you can repay part of the loan, you might be able to repay 18%, leaving 10% outstanding.
When you come to repay/redeem your loan you will need to arrange for it to be valued by an independent qualified RICS/FRICS valuer. You will be liable for the cost of the valuation and it will be valid for three months.
If the valuation expires you will need to ask the valuer for an update. You will repay the relevant percentage of your loan based on the valuation. So, if your loan was 28% of the value of your home when you bought it, you would repay 28% of the valuation amount.
If you are selling your home, we will calculate the redemption amount as the percentage of the valuation or the sale price, whichever is higher.
Request an equity loan redemption pack by emailing firstname.lastname@example.org
I have a Help to Buy scheme equity loan. Who do I contact if I wish to repay the loan?