Homeowner Loans
Need a fast, low cost homeowner loan? Complete our short application form to obtain
your free quotation. In the meantime, why not take a look at our unique guide to UK homeowner loans.
What is a Homeowner loan?
Homeowner Loans are available to most people who own their own home, whether they
already have a mortgage or not. It is secured on the borrower's home, using the
available equity in the property after any existing mortgage has been taken into
account. It is usually easier to obtain a homeowner loan than it is to remortgage and
could be particularly advantageous in situations where, for example, a borrower
has large redemption penalties on their mortgage, although the rate is likely
to be higher than that of a mortgage as the homeowner loan takes a second charge
on the property, behind the interests of the main mortgage provider.
How much can I borrow?
The amount which can be borrowed on a homeowner loan is determined by a number
of factors such as: the value of your home, your outstanding mortgage balance,
any other debts outstanding, past credit history and affordability. Most
lenders will lend a percentage of the value of your home, taking into
account credit history and affordability.
Why should I take a Homeowner loan rather than other finance?
There are many advantages to taking out a homeowner loan rather than other forms of
finance. It is usually a cheaper rate loan and is more likely to be accepted than an
unsecured loan if a borrower has a poor credit rating. It is also more likely to be
able to borrow more with a homeowner loan, as it is based on the value of the property.
Also, homeowner loans can be taken out over a longer term of years, which reduces the
monthly repayments, although this will increase the overall cost of the loan over the term.
Homeowner loans can be used for any legal purpose, not just home improvements and is
usually quicker and easier to arrange than a remortgage, with lower fees.
What should I be aware of?
By taking out a homeowner loan, the borrower is increasing the amount of debt
which is registered against their home and as a result is increasing the risk
of losing their home should they suffer financial difficulties in the future.
It is therefore vitally important to ensure that a homeowner loan is the correct
way to obtain funding. Before committing themselves to a homeowner loan,
the borrower should ask themselves exactly how much funding they require and
be careful not to over borrow. They should also question whether or not they
actually need the intended purchase, bearing in mind the potential risk to their home.
Always remember that: your home could be at risk if you do not keep up repayments
on your mortgage or other loans secured on it.
What are the best ways to source homeowner loans and how do I know if I’m getting a good deal?
There is no right or wrong way to source any type of loan, however some ways can be more convenient than others. If you have Internet access at home, researching your desired loan type online is an excellent way to kick-start the process. There are many benefits gained from using the Internet to source your prospective loan such as: -
- A huge array of choice, accessible in one place
- Speed of application whilst bypassing any human intervention
- Discounted products through online only offers
However one less obvious benefit, which is usually of the utmost importance to the homeowner loan shopper is feedback. In almost all cases, if an individual has applied for a loan with a particular provider and was less than impressed by service they received, they will often report their experience in an open forum or discussion board. For the consumer, these forums can provide an invaluable insight into the service offered by their prospective provider and can further help the consumer ascertain if they are likely to get a good deal. It is also Important for homeowner loan shoppers to remember that any proposed plan is very much specific to the individual and will be based upon a number of personal credit related factors, which have been covered within this guide.
