Paying off a secured loan and releasing the equity

[Alexatancu]

I'm currently in the process of moving home and potentially exchange contracts around June. I have however made the mistake of taking a secured loan a few years ago which I'm planning to save up and pay off by June. That would mean I'd have more equity in my home and I plan to use this added equity to pay off stamp duty/estate agents fees etc. If I were to do that would this equity be able to be released as soon as possible in time to exchange or does that take a while?

The equity will be released on completion of the sale.

I’m not completely sure I am following you, but I think that usually you pay stamp duty and estate agent fees once you’ve completed so you only need that money after you’ve sold. One thing with regard to the second loan, make sure you get it paid in time to get any restrictions at the land registry removed or it could hold the sale up.

Yes it can be a bit confusing. Yes I am aware of the fact that all the fees would be due when we complete. So what I was trying to explain is that we have an outstanding secured loan of £10k which we want to pay off just before we complete which would equal £10k more in our equity since right now the secured loan means we have £10k less in equity if that makes sense? We'll use this extra £10k in equity to pay off all the estate agent fees, stamp duty etc. i was just wondering if that will be fast to do or if it requires time to release this equity. I was thinking it shouldn't be the case since we are using the rest of the equity for the deposit when we exchange?

Basically it would be two birds one stone - pay off a secured loan whilst also paying all the fees e.g stamp duty, solicitors, and estate agent fees