Your loan deed will let you know when you need to pay your loan back. If you sell your home then you will need to repay the loan, but you don’t have to wait until then. Most loans can only be paid back in one go, but the MyChoice Homebuy allows you to pay back as little as 10% of your original loan.
How much will I need to pay back?
Your loan deed will tell you what percentage of your property value you were originally lent. If you aren’t sure, call us on 0800 145 6663 or email email@example.com to find out. The amount you pay back will be that percentage of your home’s current market value.
Original property value: £100,000
Original loan percentage: 25%
Original amount borrowed: £25,000
Current market value: £150,000
Loan percentage: 25%
Amount to repay: £37,500
How do I pay off my loan?
If you are selling your home
Please send us your Memorandum of Sale to confirm the sales price (your estate agent will give you this). Our team will check the price is fair based on what similar properties have sold for in your area. We will write to you confirming how much you will need to repay and work with your solicitor to complete the legal paperwork. Your solicitor will then arrange for the money to be sent to us when your sale completes and we will remove the legal charge we hold on your property.
If you are staying in your home
A market valuation is required to confirm the value of your home. This must be carried out by a RICS (Royal Institution of Chartered Surveyors) qualified surveyor. We have a panel of surveyors firms that our customers have tried and tested, or you can choose your own.
If you are increasing your mortgage to pay off your loan, it’s likely that your lender will have a valuation carried out. If you can provide a copy of this valuation report, including the valuer’s RICS registration details, Radian can use this.
Once you have sent us the valuation report, we will calculate the repayment figure and send you confirmation in writing. When you are ready to go ahead, your solicitor will send across the money to us and we will remove the legal charge on your home.
What if I have made improvements that add value to my home?
If you have had Radian’s written permission for home improvements, we will take these into account when calculating the repayment figure.
To find out the value of the property and the value added by your improvements, you will need to get a valuation report from a RICS qualified surveyor.
The report will need to include the open market value and a second valuation discounting the improvements you have permission for. This will tell us the value added by your improvements, which isn’t necessarily the same as what you have spent on the changes.
The amount you pay back will be calculated using the property value without your improvements.
Click here to view our panel of recommended surveyor firms, or you can choose your own.
Have a look at our ‘Improving your home‘ section to see what is counted as an improvement rather than repairs or maintenance.
What will it cost?
As well as the valuation fee (if required) there is an administration fee of £180 inc. VAT payable to Radian. This is payable on completion.