Home Equity Loan Fees

Home-equity loan fees

This fee does not go towards the repayment of the government loan. Fees and repayment of your help to purchase an equity loan Equity loan is interest-free for the first five years; from the sixth year an annual management fee of RPI + 1% is payable from the seventh year. You should be aware that you are not refunding the loan by payment of this administrative fee. When you repay the equity loan, the amount you repay is based on the fair value of the real estate at the date of the loan repayments.

When you have taken out a 20% equity loan, the repayment amount is 20% of the actual value of your real estate. When the value of your home decreases, the amount you repay also decreases, so you are safe when real estate values drop after the purchase.

Repay your equity loan within 25 years (or if your loan period ends, if it is less than 25 years) or if you are selling your home, whichever comes first. We do not offer fines for early repayments of your equity loan. It is not possible to carry over an existent loan to a new real estate object.

For more information on how to repay the loan and how much you can anticipate for the management charge from the sixth year, see the Help to Buyers Guide of the Federal Authorities. Management of payments of fees by purchasers for equity loan after five years of possession.

Assistance in buying an equity loan: Proceeds from interest payment begin in April

Helpdesk to Buy Equity, which was started in April 2013, provided purchasers of new buildings with a loan of up to 20% for their investment. Whereas in the first five years the credits were interest-free, after this period borrower began to pay fees, which were 1.75% and increased in line with the retail price index plus 1%.

Assistance with the purchase of equity loan contracts

When you have purchased your home with an Orbit equity loan, you must always get in touch with us if you make any changes, such as agreeing a new loan or making a decision to repay the loan. If you are an exisiting HomeBuy or Equity Loan client and your query is not listed below, please do not hesitate to get in touch with the leasing group.

The HomeBuy was a way to buy a house at a discounted price. How soon can I reimburse my equity loan? Equity loans can be repaid if you decide to resell your home or if you are able to afford it. Your repayment amount depends on the value of your house.

Each improvement you have made to your home will be evaluated individually. This brochure on how to cash in your equity loan (pdf, 307KB) should give you all you need to know about the procedure. If you are prepared to continue, please fill in the "Redemption Intent" at the end of the bulletin and send it back together with your evaluation statement and the management charge to be paid to Orbit Group Limited.

Is it possible to modify or enhance my home? It is necessary that you obtain our consent before changing, improving or supplementing your home. It' s also so that we can consider how the changes could impact the value of your home when you repay your loan. For more information on how to obtain a permit, please see the Implementation of your own construction work page.

Which responsibility do I have for the reparation and servicing of my house? They must keep your house in good condition and are liable for the costs of service and upkeep. If you need another deposit for essential home improvements, please see the return debit brochure (pdf, 333KB).

We may also require our approval to perform home repair and improvement work, based on the kind of work you do. Is it possible to sub-let all or part of my house? No part of your house can be rented without our consent. Thats because the HomeBuy loan should help People to buy a house so that they can be living in.

You' re gonna have to tell us if you don't want to stay at your house anymore. But we will consider to allow you to let your house for brief arranged times. You may have had to move away to provide for a family member, or you may have worked away from home for a year or less.

You will receive a license if we approve that you may sub-let your house. If you sub-let your house, you will have to pay an administrative fee. Please refer to this sublease brochure (pdf, 355KB) for more information. May I hypothecate my house? Please give us the repayment count of your present borrower and tell us how much you will take out for the new loan before your application can be made.

If you would like to lend more, please read this brochure (pdf, 333KB). Progress further is a notion used when a homeowner wants to lend more cash for a home loan. Homes and Communities Agency financing regulations only allow us to arrange further progress when the funds are used to renovate or enhance a home.

Those limitations help to safeguard the amount of government funding involved in the provision of the equity loan. An additional loan may be arranged if the funds are not intended for repair or improvement and/or exceed the limited amount, but must be calculated separate from your main hypothec. For more information, please see the rescheduling and other preliminary information (pdf, 333KB) or get in touch with us to learn more about the information you need.

Is it possible to move my HomeBuy loan to another individual? Pay back your loan if you are selling your house. There are, however, periods when the individual who owned your house changed, but your house was not for sale. One example would be when a home is given to another member of the household after the homeowner has died.

It can also occur if there is a dividend or if a property ownership agreement is broken off. Perhaps under these conditions we can move the equity loan from the present homeowner to another individual, but the regulations are stringent. If your position does not match the criteria, you must repay your loan.

Further information can be found in the brochure on administrative fees (pdf, 353KB).

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