Rezide Equity Loan
Reach your goal of homeownership with just a 5% deposit and the new shared equity mortgage product from Rezide.
Are you a first-time buyer or home mover struggling to save for that 10% deposit? The new Rezide Equity Loan helps fill the gap left by the Government-funded Help to Buy Scheme, which ended in 2023.
The loan gives aspiring homeowners who have previously been held back by affordability a chance to move up the housing ladder with a 5% deposit.
Rezide is available on all Persimmon developments across England and Wales and could be the solution you need to buy your ideal new home.
How the Rezide Equity Loan works
The loan works in a similar way to the Help to Buy scheme. Let’s break it down in 4 simple steps:
- Eligible buyers put down a 5% deposit, and take out a Rezide Equity Loan equating to 15% of the home’s market value. You can then borrow the remaining 80% from mortgage partner TSB and Barclays.
- The 15% equity loan is a minimum of £15,000 and a maximum of £100,000, making the maximum property price for the product £667,000.
- The repayment value of the equity loan will adjust up or down in the same way your home’s value will. The loan is interest-only and has a fixed interest rate of 4%.
- Full repayment of the loan is due when you sell your home or reach the maturity date of the mortgage. You could also repay it at any time before this, without incurring early repayment charges.
What is an Equity loan?
An equity loan lets you access additional funds that come with a 4% fixed interest rate. You take an 80% LTV standard mortgage from Barclays or TSB and then secure a second charge loan at 15% of the property value.
You might also hear equity loans referred to as a home equity loan or a second mortgage.
How do I apply?
If you find a Persimmon home you love and would like to reserve, speak to our expert sales advisors about the range of buying schemes available.
If you’re interested in Rezide Equity Loan, you’ll be referred to one of our recommended financial advisors for more information about the product and advice on whether it’s right for you.
The mortgage advisor will then work with you and the lenders to move forward with the process of application and getting mortgage offers.
They’ll then help you coordinate with solicitors, so that you can move on to the completion stage of buying your new Persimmon home!
Who is eligible?
The Equity Loan product is available to both first-time buyers and existing home owners, but is subject to standard eligibility criteria defined by the lenders. The recommended financial advisors will confirm your eligibility through their financial assessment.
Where is Rezide Equity Loan available?
The great news is that it's available on all Persimmon developments across England and Wales.
FAQs:
What will my monthly payments be?
Monthly payments will be confirmed by the financial advisor through the key illustration documents, so that you're fully aware of your monthly financial commitments.
Can I use the loan on any Persimmon home?
Rezide Equity Loan is available on all developments across England and Wales.
Can Rezide Equity Loan help me buy my dream home?
Yes, subject to availability. If there’s a Persimmon home you love but you don’t have the standard 10% deposit that’s usually required, and you qualify for the Rezide Equity Loan, you might be able to use the product to boost your affordability and purchase the home.
Terms & conditions
- You must be a UK resident and the main buyer needs to be at least 21 at the start of the loan, and no older than 75 at the end of the loan term.
- The home you buy with the scheme must be your residential home, it cannot be used for buy-to-let, as a holiday home or for any commercial purposes.
- You must contribute a minimum 5% of the property value as a deposit, and pass the lending criteria.
- The Rezide loan has a fixed interest rate of 4% for the entire term.
- Homebuyers can repay part or all of the Rezide loan at any time without early repayment charges.
- You must be able to secure a mortgage from a qualifying lender for a maximum of 80% of the purchase price.
- The maximum purchase price for a property is £666,000.
- The scheme is available on new homes in England and Wales only.
- Rezide is not limited to first-time buyers; it's available to all eligible homebuyers.
- The Rezide shared equity mortgage loan is only available through Persimmon’s panel of recommended New Homes Mortgage Advisers.
Looking for more ways to make your move more affordable? Take a look at some of our other great buying schemes.
- Staircase Shared Ownership - Buy your own home step-by-step using Persimmon's very own shared ownership scheme.
- Deposit Boost - If you’ve saved a 10% deposit for a Persimmon home, we could boost it by providing an additional 5%, giving you a total deposit of 15%.
- Deposit Unlock - You could buy a new home with a deposit of just 5% using mortgage guarantee product Deposit Unlock.
