Buying the 20% - Share Equity Options

osaddict

Hello everyone,

I'm asking on someone else's behalf so I can't give 100% specifics...

If someone (one person) purchased a flat 4 years ago using a share equity scheme and wants to now repay that 20% share equity, what are their options?

One broker has said the only option is to extend the current mortgage (pending passing the financials).

I'm hoping someone else has been in this situation and can advise if this is correct or if there are other options:

An additional (small) mortgage from a different provider.
A loan (one with a low rate).
Something else?

Finance wise, I believe the current mortgage is being overpaid each month, such that when adding the 20% the payments would be broadly similar if the 80% was paid at the default monthly rate.

Any advice/comments most welcome!

Thanks

kingstreet

Additional borrowing from existing lender.

Remortgage to a new lender to repay existing mortgage and equity loan.

Second charge loan from other finance provider to repay equity loan.

Each option has its merits and these should be discussed with an independent broker, but not the one who thinks the additional borrowing from the existing lender is the only option.

osaddict

Thank you, that's very helpful. I thought just the one option seemed unlikely. I will suggest the advice of other brokers is sought before any decision is made.

I'd be interested to hear from anyone who is or was in this position before too.

Thanks