A private equity loan boosts the buyer’s budget by topping up their deposit with a second charge mortgage secured against the home. An equity loan acts in a very similar way to the Government’s Help to Buy scheme. The equity loan provider provides additional capital to the buyer, so they can increase their down payment on the property.

To be eligible for a private equity loan, the buyer must have a minimum 5% deposit, be aged 24 or older, have a household income of at least £35,000 and have a good credit score.

Yes they do. In return for providing additional capital to the buyer, the lender takes a stake in the buyer's home. This means the lender will share in any future profit or loss made on the home. So, if the property increases in value by 10%, the lender's share in the property will increase alongside this.

Each lender has their own eligibility criteria and rules on how the loan is payed back, so our advisors will help you decide on what's the best option for you, but key principles apply. There are interest only options which reduce monthly payments, but give the lender a larger "stake" in your home. When an interest rate does apply, rates start from 6.99%.