Homeowner Loans Online
There is a type of loan that is suitable for people that own their own home, where the loan is secured against the property. Because the loan is secured against the home, this type of loan is often referred to as a homeowner loan.
Because of the security attached to the loan, the lender is exposed to less risk. Because of this fact, lenders are more likely to approve a homeowner loan even if you don't have the best credit history or if you are self-employed.
Homeowner loans can quite often be an attractive alternative to a loan from a bank or other unsecured lender. You can apply for loans from £5,000 to £100,000 for any legal purpose, from debt consolidation, to home improvements, whereas unsecured loans usually have a maximum loan size of around £15,000.
Also, as the loan is secured, the Lender can, often offer a better interest rate than unsecured loans, because there is less risk.
A homeowner loan can offer you.....
- Lowest interest rates
- Borrow up to 85% of property value
- Plans available for self employed.
- Loans from £5,000 to £100,000
- Bad credit history is no problem
- No upfront fees
How Much Am I Able to Borrow?
Homeowner loans typically range from £5,000 right up to £100,000. The actual amount that you can borrow will be governed by three main factors. The first factor is the amount of equity that you have available in your property. Equity is the difference between any outstanding mortgage or loan balances on the property and the actual value of your property. As an example, if you have a property worth £250,000 and you have a mortgage of £150,000 then your equity is £100,000.
Currently, the majority of lenders will lend up to 85% of the value of your property. This is after the outstanding balance of the mortgage has been taken into account.
The second factor that will affect how much you can borrow will be your income and your outgoings. The lender will need to establish that you can actually afford to take out the loan, and therefore what you earn will dictate how much that you can borrow.
The third factor is your credit score. If you have a poor credit score, some lenders reduce the maximum Loan to property value that they will lend. Some reduce it down to 75% of the value of your home.
Interest Rates
Your credit score will also affect the interest rate of the loan. The better your credit record, the cheaper the loan, usually. However, there is quite a difference in the interest rate of secured loan lenders so costs can vary. At Loan Arrangers (www.loan-arrangers.co.uk) we endeavour to get you the home loan that you require at the best rate, whatevr your situiation.
Compare Homeowner Loans - Use Our Loan Comparison Service
By using our Loans Comparison Service, you can find and compare the best loan plans available. Once we have identified a suitable loan, we can have an answer for you in under 30 minutes with a FREE no obligation loan quote.
Alternatively, why not give us a call to discuss your requirements in more detail.
Call us FREE on 0800 061 2453