Knightsbridge Estates Trust Ltd v Byrne [1940] AC 613 is a UK insolvency law case, concerning the creation of a security interest.

Knightsbridge Estates wished to pay off the principle sum of the £310,000 loan from Mr Byrne’s insurance company.

If Knightsbridge paid off the principal early, it would reduce the total amount of interest it would pay to Mr Byrne.

Knightsbridge Estates argued that the long repayment schedule was a clog on the equity of redemption.

He said that this was ‘a commercial agreement between two important corporations, experienced in such matters, and has none of the features of an oppressive bargain.’ The House of Lords upheld the Court of Appeal.