Frequently Asked Questions
Home financing can be confusing. We don’t want it to be.
The OnLadder team is passionate about working to make home ownership easier and more affordable. We do this by offering you an equity loan to pay most of your deposit, so that you can buy a home that suits your needs.
While most loans ask you to repay the value of the loan + interest, an equity loan is fixed to the value of your property.
Let’s say you buy a home for £300,000, and you have an equity loan of 25%.
- Today, you owe £75,000.
- If your home goes up in value by 10%, to £330,000, you’ll owe £82,500.
- If your home goes down in value by 10%, to £270,000, you’ll owe £67,500.
We collect fees from our investors, and charge our customers a small fee when we issue your loan.
The terms of your loan will be secured, so everything will stay the same for you. You will still need to repay the loan at the end of your contract.
Buying a Home with OnLadder
When you apply for a loan from OnLadder, you’ll need to have a household income of over £30k per year, no adverse credit history, and good rental history.
We charge a 2% fee at the beginning of your contract. We’ll also adjust the value of your property for risk.
While other products will typically charge interest or rental payments, we wanted to create a product that gives you more flexibility when repaying.
When we make an OnLadder loan, the loan is tied to the value of your home, so we share in both the upside and downside. To protect ourselves from some risk, we adjust the value of your property when we lend.
You’ll need to provide a 5% deposit to be eligible for an OnLadder loan, but you can certainly pay more if you’d prefer.
You can take an OnLadder loan in any amount up to 25% of the property value.
We’re funded by institutional investors, and you’ll never hear from them. That’s our job.
You will. The home is entirely yours in your own name.
Living with OnLadder
We charge a 2% fee at the beginning of the the contract, and then you have the flexibility to repay at any time during the loan term. We charge no interest, rent, or other regular payments, and we never will.
As far as OnLadder is concerned, of course you can. It’s your home, and you’re free to live in it any way you’d like. That said, you might want to check with your mortgage company for any restrictions they might have about renovation or refurbishment.
The time to repay us is either when you refinance or sell your home, or at the end of your primary mortgage term.
We also offer to set up a voluntary payment plan to spread the final payment out, but this is your choice, and there are no penalties for missed payments.
There are no penalties for paying early or waiting until later.
When we issue an OnLadder loan, it’s repayment value is a fraction of the property value. If you owe us 25%, you’ll repay us a quarter of the property value at the time of repayment.
While paying us back in cash is certainly an option, it’s not the only one, and we don’t expect most of our customers to do this.
Remortgaging is the simplest way to repay us, which would add the balance of our loan to your mortgage.
We can also offer to set up a voluntary payment plan to spread the final payment out, but this is your choice, and there are no penalties for missed payments.
Because the OnLadder deposit is an equity loan, when you lose, we lose. If your home has gone down in value, you’ll pay us less.
Every month, we’ll make an automatic valuation of your home, based on similar properties in your area.
At any time, you have the option to have a professional assessor check the value of your home, and we’re happy to adjust the valuation if the assessment differs from our estimate.
You can repay us whenever you like. In many cases, our customers will save money if they refinance at the end of their fixed mortgage term.
We never expect our customers to pay entirely out-of-pocket. If you’ve been making your monthly mortgage payments, you should have enough home equity to refinance, and we’ll help you find the best solution possible.
Have a different question?
Ask us here, and we’ll get back to you as soon as possible.