L&Q my choice home buy equity loan

Happie

I am very concerned about my equity loan with L@Q every year the amount of interest we pay goes up with inflation, it is now on 4.9% and have to pay £159.73 every mouth that’s just the interest plus they have equity in our home once we sell. We have had it for 9 years now and the percent of interest we started paying was 2.7 % on the amount we borrowed. It has gone up a lot and we are both slightly worried about how we are going to eventually pay it off.
How can we pay it off as we still have a 15 year mortgage left to pay and I don’t understand how it’s going up so much every year when my husband hasn’t even been giving a pay rise to match the inflation, the reason we got this was to help buy our house which it has and he was able to get it as he is a key worker (firefighter) but surely the percentage of interest can’t keep going up and up when he hasn’t received any pay rise??? Any ideas on what we can do without selling up? Is it right for them to keep increasing the interest amount every year??

Happie

Loan started on 1.7% not 2.7% I am unable to edit it now

[Deleted User]

The rate on a loan doesn't need to match increases in income. There is no connection between the two.

You only options are to either clear the loan, or restructure it by getting a cheaper loan. Whether this is possible will depend on your circumstances.

If selling is the best option overall, then you need to consider it.