Help to Buy equity loan agreements
If you bought your home with an equity loan from Orbit, you will need to contact us when making changes such as arranging a new mortgage or deciding to redeem the loan.
Please contact the leasehold team if you’re an existing HomeBuy or Equity Loan customer and your question isn’t answered below.
HomeBuy was a way of buying a home at a reduced cost. The product is no longer available but you can find out about similar schemes through the Government’s Help to Buy website.
When can I repay my equity loan?
You can repay your equity loan when you sell your home or when you’re financially able to.
The amount you pay back will be based on the value of your home. This will need to be set by an independent RICS (Royal Institute of Chartered Surveyors) surveyor. Any improvements that you’ve made to your home will be valued separately.
You will need to pay an administration fee (pdf, 353KB) for this service.
The redeeming your equity loan leaflet (pdf, 307KB) should tell you all you need to know about the process. When you are ready to proceed, please complete and return the 'Intention to redeem form' at the end of the leaflet along with your valuation report and the administration fee made payable to Orbit Group Limited.
You can return a scanned, signed copy of the Intention to redeem form to our postal address.
Can I change or improve my home?
You must get our permission before you change, improve or add to your home.
This is to protect our interest in the property. It is also so that we can take into account how the changes might affect the value of your home when you redeem your loan.
Please see the Carrying out your own home improvements page for more information about how to apply for permission.
What responsibilities do I have to repair and maintain my home?
You must keep your home in a good state of repair and you are responsible for the cost of repairs and maintenance.
We will need to formally agree if you need to take out a further advance to pay for vital repairs to your home - please refer to the remortgaging leaflet (pdf, 333KB). You might also need our permission to carry out home repairs and improvements, depending on the type of work you’re doing.
You might be able to make a claim on your buildings insurance if your building is damaged.
Can I sublet all or part of my home?
You mustn’t let out any part of your home without our permission. This is because the HomeBuy loan was intended to help people buy a home for them to live in. You must tell us if you don’t want to live in your home any more.
We will consider allowing to you rent out your home for short agreed periods of time. This might happen if you had to move away to care for a relative, or were working away from home for a year or less.
You’ll be issued with a licence if we agree to let you sublet your home. We’ll need a copy of your tenancy agreement and your management agent’s details. There is an administration charge if you sublet your home.
For more information please read this subletting leaflet (pdf, 355KB).
Can I re-mortgage my home?
You must tell us if you want to change your mortgage provider. We will need to agree to this.
You will need to provide details of the redemption figure from your current mortgage lender and tell us how much you will borrow on the new mortgage before your request can be agreed. Please refer to this remortgaging leaflet (pdf, 333KB) if you want to borrow more. We will ask you to provide some information, so we can make sure requirements are met. You will need to provide your mortgage offer.
We will charge you (pdf, 353KB) for agreeing to the re-mortgage and issuing formal consent to the lender.
What is a 'further advance' and can I apply for one?
Further advance is a term used when a home owner wants to borrow more money on a mortgage. This can be with their existing mortgage lender or as part of a re-mortgage.
We will need to agree if you want to borrow more money and there is an administration fee (pdf, 353KB) for this service.
The Homes and Communities Agency funding rules only allow us to agree further advances where the money is being used to repair or improve a home. The amount of extra borrowing that is allowed is also restricted. These restrictions help protect the public money invested in providing the equity loan.
We can agree extra borrowing if the money isn’t for repairs or improvements and/or is above the restricted amount, however this must be charged separately from your principal mortgage.
Please read the re-mortgaging and further advance leaflet (pdf, 333KB) or contact us to find out more about the information you need to supply.
Can I transfer my HomeBuy loan to another person?
You have to redeem your loan when you sell your home. However, there are times when the person who owns your home changes but your home hasn’t been sold. An example of this would be when a property is left to another member of the family after the home owner dies. This can also happen when there is a divorce or a relationship breaks down between home owners.
We might be able to transfer the equity loan from the current home owner to another person in these circumstances, but the rules about this are strict. You will have to redeem your loan if your situation doesn’t meet the requirements.
You will be asked to pay our solicitors’ fee if you qualify for a transfer. You can contact us to find out how much this will be.
We might ask you to pay a small administration charge to cover our costs:
- when you’ve asked for permission to change your lease or for something else that needs our official consent; or
- for supplying information or documentation.
We will charge you for providing these services. The administration charges leaflet (pdf, 353KB) contains more information.
Planning home improvements?
If you want to make changes to your property from Orbit, you may need to contact us for permission first. Find out more about which types of home improvements you need to contact us about.Permission for home improvements