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Debt consolidation, home improvement

Buying a Holiday Home? Fulfil Your New Property Investment Dreams by Getting a Homeowner Loan or Remortgage Secured by a Low Interest Rate Loan

Are you looking to buy a holiday home?

It is estimated that over one million Brits now own property overseas. Whether you are searching for somewhere with a better climate, somewhere you can eventually retire to or simply a property which you think will provide excellent investment returns, buying abroad is increasingly popular.

However, finding the cash to buy a foreign property can be tough. Foreign currency mortgages can require a large deposit and be risky, whereas not all UK lenders will consider additional borrowing for you to buy overseas.

So, a homeowner low interest rate loan could well be the solution.

Buying a Holiday Home

Most Brits are looking for sea, sun and a wealth of things to do when they buy abroad. In 2008, the most popular country for property investment was Spain, closely followed by France, Turkey and the USA.

Emerging markets such as Bulgaria, Cyprus and Dubai were also popular as were Portugal, Italy and Germany.

Foreign Currency Mortgages

These days, it is often possible to take out a mortgage in the country where you are buying your property investment. Mortgages in Euros, dollars or other currencies are increasingly widely available.

However, foreign currency mortgages can be difficult to understand. They also carry an exchange rate risk.

If sterling falls in value against the currency of your mortgage, then you will be out of pocket. You effectively have to repay more than you initially borrowed. It can be a huge gamble, and your home could rest on it. Your foreign property will be at the mercy of the exchange rates so whilst you may benefit if sterling moves in your favour; you could also end up significantly out of pocket.

Homeowner Loan in the UK

The preferred choice for most Brits buying a holiday home abroad is to raise the money needed for the purchase in the UK. This is most commonly done through a remortgage or via a homeowner secured loan.

A remortgage is one possible option. You can switch your mortgage to another lender and borrow the additional amount you need to fund your overseas purchase. However, mortgage lending is much more difficult to obtain since the global financial crisis and lenders are much stricter about how much they will lend you based on your income and the value of your home.

A homeowner loan may therefore be a good alternative solution. This allows you to borrow money secured against the equity in your UK property at a low interest rate. You can then use these funds to buy your vacation home outright.

The advantage of a homeowner loan is that you know exactly what your repayments will be every month. So, if you plan to rent out your holiday home for part of the time, you will know what income you have to generate to meet your monthly secured loan commitment.

Buying a holiday home is no longer the reserve of the mega rich. Over a million Brits now own properties from Brazil to Bulgaria, so why not consider a homeowner loan to help you buy that dream property in the sun?

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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