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  • FIRST POST
    • Happie
    • By Happie 10th Feb 18, 11:08 AM
    • 7Posts
    • 0Thanks
    Happie
    L&Q my choice home buy equity loan
    • #1
    • 10th Feb 18, 11:08 AM
    L&Q my choice home buy equity loan 10th Feb 18 at 11:08 AM
    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 thatís 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 donít understand how itís going up so much every year when my husband hasnít 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 canít keep going up and up when he hasnít 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??
Page 1
    • Happie
    • By Happie 10th Feb 18, 11:10 AM
    • 7 Posts
    • 0 Thanks
    Happie
    • #2
    • 10th Feb 18, 11:10 AM
    Error in first post
    • #2
    • 10th Feb 18, 11:10 AM
    Loan started on 1.7% not 2.7% I am unable to edit it now
    • zx81
    • By zx81 10th Feb 18, 11:15 AM
    • 16,386 Posts
    • 17,438 Thanks
    zx81
    • #3
    • 10th Feb 18, 11:15 AM
    • #3
    • 10th Feb 18, 11:15 AM
    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.
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