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What is an equity loan?

April 26, 2017equity loan

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What is an equity loan?

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This is a loan up to a limit of £50,000 (some London school teachers will be eligible for a higher limit). You do not make monthly repayments as you do not repay the loan until you sell the property or stop being a key worker. At that time you would need to repay a percentage of the property’s value at the time. The percentage would be the same as the percentage of the purchase price your equity loan covered. So if you got a £40,000 equity loan to buy a home for £160,000, the loan would represent 25% of the purchase price, and you would have to repay 25% of the value of your home when you sell it or stop being a key worker. You can ask the zone agent for more information.

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A. An equity loan is secured by the equity you have in your homestead. Your “equity” is the value of your homestead minus any outstanding debt already secured by your homestead. Q.