Illustrative Example

Example showing how a Rezide Equity Loan could work when you buy a new build home.

Figures are illustrative only – actual terms, rates, and affordability will depend on individual circumstances and the main lender’s criteria.

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Purchase with Rezide Equity Loan

Purchase without a Rezide Loan

Purchase price of new build property

£300,000

£300,000

Your deposit (5%)

£15,000

£15,000

Rezide Loan amount (15% of value of the property)

£45,000

£0 (N/A)

Amount required for main mortgage lender

£240,000
(80% of purchase the price)

£285,000
(95% of purchase the price)

Monthly repayments

(Your mortgage adviser will be able tell you what monthly payments will be)

You will have to make monthly repayments on your main mortgage and separate monthly interest payments on the Rezide Equity Loan

You will have to make monthly repayments on your main mortgage

Minimum Income required by your main lender

£53,452 per year

£63,474 per year

(we have assumed that your main lender will lend up to 4.49 times your annual income. The actual minimum income amount required by a lender will vary dependent on their own criteria and your personal circumstances, so speak to your mortgage adviser)

Key Risks

  • This is a regulated second-charge loan secured against your home. Your home may be repossessed if you do not keep up repayments on your main mortgage and/or the Rezide Equity Loan.
  • The Rezide Equity Loan may restrict who you may be able to get your main mortgage from.
  • The value of your home may go up or down, which will affect the amount you will need to repay on your Rezide Equity Loan.
  • The amount you owe could increase if your home’s value rises — because the amount you have to repay is based on a percentage of your home’s future market value. To repay your Rezide Equity Loan in full, you would need to pay 15% of the market value of your property at that time.
  • The value of your home could fall, which may affect your ability to remortgage or sell. A lower property value could mean there is less money than your original deposit left, after repaying your main mortgage and your Rezide Equity Loan. 
  • Full details on the Rezide Equity Loan, including costs and risks, are available from your FCA-authorised mortgage intermediary before application.