Homeowner Loans

Homeowner loans have a distinct advantage when applying for a loan. Owning your home puts you in a strong financial position even if you have a bad credit rating. With such a large asset to offer as collateral against a loan means that you present a very low chance of non-payment to the potential lender. By virtue of the reduced risk to the lender, it is often a simple and quick process to arrange a homeowner loan.

Homeowner loans are a form of secured loan, and thus are secured against the value of your home. Therefore the loan is based upon the equity available in your property, while retaining your original mortgage which, in turn, attracts a better, lower interest rate compared to unsecured loans.

Secured Loans

The amount that you will be able to borrow on a homeowner loan will vary, but typically it will be limited to the value of the equity in your home. The equity is basically the part of your home that you own, so it will be the market value of the house less any outstanding mortgage and any other debts secured on it. This is the upper limit, and the amount you can borrow may be lower than this as the lender will also take into account your earnings to determine what level of repayments you can afford.

The money borrowed is able to be spent however you wish, from paying off existing debts that are pressing (such as overdrafts, credit and store cards), to home improvements, a new car, wedding, dream holiday or simply to have some extra money for a rainy day.

Personal Loans

Home owner loans can usually be paid off over a long term if you so wish. This will help you to reduce your monthly payments even more and should your finances develop you will be able to make overpayments to clear the loan more speedily. When deciding on the repayment term, you should aim to keep it as short as possible, whilst keeping the monthly repayment amount to a level that you can realistically afford to meet.

However, these loss-leader rates are supposed to earn a long-term profit for the loan provider by keeping you for 20 or so years on the higher rate of interest after the end of the initial discount deal. But, in recent actions, lock-in redemption penalties that are imposed after the special offer rate expires are now frowned upon which has paved the way for even better deals for the homeowner, whether it be with their current loan provider are switching to another at a later date.

Getting your homeowner loan arranged couldn't be simpler thanks to the Internet, simply fill out our no-obligation application form and our experts will do the leg work for you, and help you arrange the loan you need at a competitive rate of interest.