The Six easy steps to repay your Step up equity loan

Posted: 1 July 2017 by Higgins Homes

Due to the current market conditions, the housing market is strong and this may be an ideal opportunity for you to redeem the outstanding share. Many of our buyers on this scheme have
recently taken advantage of the low interest rates available and have recently re-mortgaged their home which has offered the owners security in the event that house prices continue to rise.


Re-mortgage & savings


1. The current market value of your property will need to be established. The best way to do this is to ask three local estate agents to provide you with their views on the current achievable value of your home. The agents should be asked to provide comparable evidence of properties similar to yours that have recently been sold.

2. Once you have all the figures, you should discuss with either your current mortgage provider or an independent financial adviser whether or not the new amount of mortgage required is both available and affordable. Attached are details of an independent financial adviser who is very familiar with the Step Up Scheme, your development and the process involved. He has acted for many of our buyers in the past and would be more than happy to assist you.

3. You will then be in a position to make us an offer for the repayment of the equity share (or part share). This should represent the same percentage of the original transaction, but calculated against the current day value of your property. Please email us your offer together with the agent’s valuations and comparable evidence.

4. If we are unable to mutually agree an acceptable figure and you still wish to proceed, then an independent Chartered Surveyor will be appointed to provide a valuation. The surveyor will be appointed by us and paid for by you.

5. Once agreement on a figure has been reached you will then be able to proceed with the redemption / part redemption of the Second Charge. You will need to instruct a lawyer to deal with the matter on your behalf. It is often easier to instruct the same firm that represented you on purchase, but it is not essential to do so.

6. The figure agreed will remain valid for a period of Six weeks in order to give you time to finalise matters. After six weeks the figure will need to be reviewed.


If you have any questions relating to your step up loan, please contact Chris Johnston for an informal chat: 

020 8498 6066

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