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Debt consolidation, home improvement, self-employed, bad credit

5 Reasons Why Homeowner Loans Are a Great Low Interest Way to Borrow

Whatever you are looking to borrow for, a homeowner loan is a great way to raise the finance. Whether you need money for home improvements, a new car, the holiday of a lifetime or simply to consolidate other debts, secured homeowner loans are a great way to borrow.

Here are five great reasons why you should consider a homeowner loan.

1. Low interest rates

One of the main reasons why you may wish to consider homeowner loans as a way of borrowing cash is thanks to the interest rates. Homeowner loans are secured on your property, meaning that a lender takes a legal ‘charge’ over your home. If you fail to keep up your repayments, the lender is entitled to recoup their money from any forced sale of your property.

This gives a lender much more security than other sorts of borrowing. For example, an unsecured loan has no such collateral which means lenders find it much more difficult to get their money back if you fail to keep up your repayments.

So, this additional security means that lenders can offer excellent interest rates to borrowers.

2. Use the equity in your home

Homeowner loans allow you to borrow using the equity in your home. If the value of your property is significantly higher than your outstanding mortgage (or if you have no mortgage at all) you can use this equity in the form of a homeowner loan.

Rather than having to sell your home to release the equity, you can remain in your property and borrow a portion of the equity you have.

3. Pay off high interest loans and credit cards

Many unsecured loans carry high interest rates. It is also not unusual for credit cards to charge interest rates of between 15 and 20 per cent.

So, homeowner loans are a great way of consolidating existing debts. You can borrow cash secured against your home and repay all your high interest rate debts. It also makes your finances easy to manage as you have one monthly payment rather than lots of smaller payments to a number of different creditors.

4. Borrow even if your credit rating is not perfect

Unsecured loans can be tough to find. Lenders are ever increasingly choosy about who they lend to and underwriting criteria for loans have become stricter and stricter over recent years.

If you do have a less than perfect credit record – perhaps you have a default or County Court Judgment (CCJ) – you may find it difficult to be agreed for the credit you need. However, many homeowner loan lenders are happy to lend to you if you have experienced credit problems in the past. Whatever your credit issue have been, it may still be possible to secure credit using a homeowner loan.

5. Self-employed and ‘self-certification’ homeowner loans

If you are one of Britain’s four million self-employed people, it can also be hard to get a loan. Lenders often require several years’ company accounts or bank statements before they will agree the credit you need.

However, many homeowner loans are arranged on a ‘self-certification’ basis. This means that a lender doesn’t require any proof of earnings, which makes it much easier for a self-employed individual to secure the loan they need.

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

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