Interest Roll-Up Loan (APR 5.1%)
No monthly repayments are made. Instead, the loan capital and the interest accrued are repaid when the property is sold.
What is the Interest Roll-Up Loan?
With an Interest Roll-Up Loan, the initial loan amount, plus the interest accrued, will be repaid out of the proceeds of your house when it is sold. This means that interest is continually added to your balance and thus the amount you need to repay is constantly increasing over time.
Can I settle early or make part payments?
If you wish you may make part payments, or pay the balance in full, you can do so at any time with no charges being incurred.
Who is this loan available to?
The Interest Roll-Up Loan is available to homeowners aged 60 and over. The eligibility criteria relating to appropriate work can vary, so please contact South Coast Moneyline for more information. The Interest Roll-Up Loan is ideal for those who cannot afford to make any monthly repayments but who need work undertaken to their homes.
How much can I borrow?
Loan amounts from £1,000 to £25,000 are available. The amount lent will be dependent on the extent and cost of the works to be done.
Is security required?
Yes. The loan will be secured using an equitable mortgage. Similar to most other mortgages on the market, this means that the property cannot be sold, or the ownership changed without the Home Trust Loan being repaid.
How much interest will I pay?
Unlike secured loans from most other lenders, the interest rate will remain at 5.0% (5.1% APR) throughout the entire term of your loan. This means we will be able to calculate what your balance will be at any point in the future. The table below illustrates the total amount (initial loan plus interest) to be repaid for loans that are settled after a variety of periods:
|
Loan Amount
|
Term
|
Monthly
Repayment
|
Settlement
Figure after:
|
|
£3,000
|
|
£0
|
5 yrs
|
£ 3,850
|
|
Life
|
15 yrs
|
£ 6,341
|
|
|
30 yrs
|
£ 13,405
|
|
|
|
|
|
|
|
£5,000
|
|
£0
|
5 yrs
|
£ 6,417
|
|
Life
|
15 yrs
|
£10,569
|
|
|
30 yrs
|
£ 22,341
|
|
|
|
|
|
|
|
£15,000
|
|
£0
|
5 yrs
|
£ 19,251
|
|
Life
|
15 yrs
|
£ 31,707
|
|
|
30 yrs
|
£ 67,024
|
Are there any other costs involved?
We do not charge any legal or administration fees to arrange your loan. However, we will need to collect an HM Land Registry fee which enables us to register the charge to secure the loan against your property. The standard fee is £50, although your Home Trust Loan Officer will confirm the amount before you enter an agreement. When the Loan Agreement has been signed, the HM Land Registry fee will be collected and is thereafter non-refundable. Until you sign your Loan Agreement however, there are absolutely no costs and therefore you can be assured that there is no obligation to take out a loan.