Guidance for equity loan customers

Repairs

We do not carry out any repairs to equity loan customer's homes.

There is a defect liability period on brand new properties sold under our equity loan scheme.

If the property is a flat, we or another managing agent are responsible for maintenance of the communal areas/ and or the structure of the building for which a service charge is payable.

Interest charges

Interest charges are payable from the 5th anniversary of the loan until the loan is paid in full.

Interest is charged at a rate of 1.75% of the original loan value or on any proportion of the loan outstanding.

Interest charges are reviewed on 1 April each year.

Redemption of second charge

The loan term may be for 10 years or 25 years. You can chose to pay all or part of it back to us at any time before then in minimum 5 or 10% tranches depending on the term of your loan.

The amount to be paid back is calculated based on a current market valuation. It is not based on the value of the original loan.

Bromford have to arrange for an independent valuation to be carried out to calculate the loan balance. The valuation lasts for 3 months. You will have to pay for this in advance.

If you wish to pay back all or part of your loan, please complete the loan redemption form below: 

 

Alterations to your home

You should check if you need permission before making any alterations to your home.

Please note: Administration fees are applicable for considering this request. Payment of the fee is required in advance of the service being provided (a sales invoice will be sent to you following receipt of the alteration request form).

Fees are non-refundable in the event that consent is not given or if you decide not to go ahead with the works

Subletting

Our permission is needed for subletting. We will agree to this if:

• there are no outstanding interest charges payable to us 
• we are given a correspondence address.

You will also also need your mortgage lender’s permission.

Change of name

You can change the name of the person on the loan without having to pay back the full loan.

You will have to instruct a solicitor to do this.

Remortgaging

If you want to change your mortgage lender or remortgage you have to obtain our permission.

We will need the following from the mortgage lender before we can give this:
 
• Details of the new mortgage 
• A property market valuation 
• A statement of the mortgage balance.

Administration fees are charged for a range of services provided to homeowners. These services are not included within the service charge. Payment of the fee is required in advance of the service being provided.

All fees include VAT and are reviewed on 1 April each year based on the actual cost of providing services.

 Find out more about administrative charges.

These fees are for our administration services only. Additional fees may apply – e.g. valuation fees and/or our legal fees as well as your own legal fees.