Key worker loan, tower homes

Happie

Hi my husband brought a house in 2009 with the help of a key worker scheme. We have been paying interest on the loan to them every month and they also own a percentage of the house. What is the best way of getting rid of this. We need advise and no one seems to know about the scheme as tower homes is no more and have been taken over by L&Q.  

K_S

Happie said:

Hi my husband brought a house in 2009 with the help of a key worker scheme. We have been paying interest on the loan to them every month and they also own a percentage of the house. What is the best way of getting rid of this. We need advise and no one seems to know about the scheme as tower homes is no more and have been taken over by L&Q.  

@happie When I was working in east London, I've done a few of these for clients with flats in Whitechapel and other parts of Tower Hamlets. Haven't had one in a long time now as a lot of these buyers have sold the property, banked their gains and moved on.

As long as you can afford (as per lender calculations) to pay off (usually by adding it to the mortgage) the equity loan components and remortgage to a standard mortgage, it should be fairly straightforward. There were a few issues of negative equity with flats back in 2013-14 but you'd have to be extraordinarily unlucky to be in that situation in 2022 for a property in Tower Hamlets or anywhere in east London for that matter.

If you haven't already, I would recommend speaking to a whole of market mortgage broker to understand your options. The MSE guide here will help you find one
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

With respect to the TH/L&Q arrangements, to be able to give you useful advice, at a minimum they'll need to know the approx value of the property today, what % of the property you own, what % is an equity loan, any other loans that are secured on the property and whether there are any penalties for paying off the current mortgage.