Want to use your home to raise money at a competitive APR?

Debt consolidation, home improvement

Why Take a Homeowner Loan?

A homeowner loan is a loan that is available to people who own their own property. You are able to borrow money based on the equity in your home in return for a lender taking a legal ‘charge’ over your property.

So, why get a homeowner loan?

A homeowner loan is cheaper than other types of borrowing

A secured loan is generally cheaper than other forms of borrowing such as a credit card, an unsecured loan or a bank overdraft. This is because the lender has the security of your home as collateral, unlike unsecured loans where they do not have any asset that they can repossess and sell in order to recoup their money.

Of course, securing a loan on your home means that your property will be at risk if you fail to keep up the repayments on your homeowner loan. This is not the case with unsecured loans or most credit cards.

A homeowner loan is easy to arrange

The application process for homeowner loans is simple and straightforward and may lenders allow you to apply online. This means that you can benefit from the proceeds of your homeowner loan within just 3-6 weeks of applying.

A homeowner loan can be used for almost any purpose

One of the main benefits of a homeowner loan is that you can use the money for almost any purpose. You can use a homeowner loan to:

  • Repay other debts such as loans or credit cards
  • Undertake improvements to your home
  • Pay for a one off item such as a new car of luxury holiday
  • Pay for a wedding or to help your child through university or college

You can also use a homeowner loan for a wide range of other purposes including meeting education fees, paying for cosmetic surgery, buying a new caravan or as the deposit for a second/holiday home.

A homeowner loan can help you to consolidate your other debts

If you’re paying a high rate of interest on unsecured loans or credit cards then it may be beneficial for you to consolidate these with a homeowner loan.

Homeowner loans will typically attract lower rates of interest and so you’ll save interest charges by consolidating your other debts. You may also be able to spread your repayments over a longer period of time making them more affordable to you on a monthly basis.

A homeowner loan can help you improve your home

If you are looking to add value to your home, undertake essential repairs or to help make your home more attractive to potential buyers, a homeowner loan can help you fund the work.

Whether you’re looking to refit your kitchen or bathroom, redecorate the interior of your home, add an extension or conservatory or undertake repairs such as a new roof or new windows, a homeowner loan can help you raise the cash that you need.

A homeowner loan can help you reduce your monthly outgoings and keep control

You may be struggling to meet the repayments on your credit cards and unsecured loans. It can be particularly difficult to manage your finances if you have multiple debts with lots of different creditors.

A homeowner loan allows you to repay all of your other debts leaving you with one affordable, monthly repayment. As well as helping you to reduce your outgoings it also makes your household finances easier to control.

A homeowner loan can be agreed even if you’re self employed or if you’ve experienced credit problems

Over recent years it has been tough for self employed applicants or those with previous credit problems to obtain unsecured loans and credit cards.

However, a homeowner loan can be the perfect answer if you’re self employed or if you have County Court Judgments (CCJs), defaults or missed payments on your credit file. Homeowner loans require your property to be given as security for the loan meaning lenders are much more likely to recoup their money if you don’t keep up your repayments.

A homeowner loan can prevent you from having to sell your home

If you have equity in your home that you need quickly – perhaps to pay debts or to fund a purchase – selling your home may well seem like the only way to access this money. However, a homeowner loan can allow you to access the equity in your property without having to sell.

You can benefit from raising funds using the equity in your home and you can also continue to live there.

A homeowner loan can be repaid early or when you move house

If you want to repay your homeowner loan before the end of the term you are allowed to do this. You may have to pay around 1-2 months interest in order to settle your loan early, but you do have the flexibility to repay your loan at any time.

Similarly, when you come to sell your house you can repay your homeowner loan at the same time as you repay your main mortgage.

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

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