Are you in need of a large loan? As a homeowner, you could be eligible to borrow up to £25,000 with Personal Loans Now. We offer homeowner loans with high rates of acceptance, even for those with a poor credit history in some cases. Apply now for an instant decision – you could be eligible for a same-day payout if you’re approved.
What Is A Homeowner Loan?
A homeowner loan is a type of secured loan in which the lender uses your property as security against the amount of credit that you want to borrow. Taking out a secured homeowner loan means that the lender could repossess your property if you can’t repay the debt. This type of secured loan is also known as a second mortgage or a home equity loan and can be useful if you want to borrow a large sum of money but have a poor credit rating.
If you’re looking to apply for this type of loan, homeowner loans direct lenders have a few requirements:
- You can borrow money against the value of your property up to £25,000
- You’ll need to pass the credit and affordability checks
- You will have to pay interest on the money you borrow
- You can pay it back over a minimum of 1 year
Can I Get A Homeowner Loan With Bad Credit?
Yes, PLNOW offers homeowner loans to applicants who may have poor credit. We weigh affordability over your credit score alone, and if we determine that you can afford to repay the loan, we may approve you no matter what your credit score is. Homeowner loans direct lenders offering secured loans usually provide higher acceptance rates for people with bad credit, as your property acts as collateral to secure your loan and reduces the risk they will uphold.
Useful Tools That Homeowner Loans Direct Lenders Can Offer You
A homeowner loan calculator:
A secured homeowner loan calculator is a useful tool that tells you in real terms how much your secured loan is going to cost. While all direct lenders have to tell you the Representative APR of their loans, it’s not always clear what that percentage means for you. The direct calculator at PLNOW will break down these details for you.
A homeowner loan calculator will tell you:
- The amount you’ll repay at every instalment
- How many instalments there will be
- The total amount to repay
A secured loan eligibility checker:
This tool will tell you how likely it is that you’ll be approved for a loan, and how much you could be offered. Remember, cheap, secured credit is usually reserved only for applicants with very good credit scores, but every lender will have slightly different goalposts for this.
What Should I Consider Before Taking Out A Homeowner Loan?
Taking out a secured loan against your property is a big commitment. As a responsible lender we have put together some important points that you should think about before taking out a loan:
- Property Repossession – If you can’t afford to repay the secured loan, you are at risk of losing your home. With homeowner loans, direct lenders could repossess your property and sell it to repay the debt.
- Early repayment fees – Some lenders may charge additional fees if you repay your loan early. Though it seems unfair, this happens because they won’t be receiving the interest they expected to when you took out the loan.
- Variable interest rates – If the rate on the loan fluctuates according to market changes, this is variable interest. If you are considering taking out a secured homeowner loan, you should always check for this as it could make it difficult to budget your repayments. If rates were to go up, you might end up paying a lot more in interest than you expected, so it’s essential to make sure that you will be able to afford the monthly repayments if they were to go up.
- Repayment Holidays – Sometimes, the unexpected happens. It’s always worth checking if your lender offers a repayment holiday, which could allow you some leeway if you find yourself in a bit of a squeeze financially. Some lenders make it clear that they won’t allow for this.
Learn more about PLNOW’s homeowner loans
If you want to find out more information regarding how our loans work, visit our How It Works page or contact us. Or, if you are ready to apply now, start your application by clicking below!
What Do I Need To Be Eligible For a Homeowner Loan?
You can apply if you:
- Are above 18 years old
- Are a UK resident
- Hold a UK bank account
What Can Homeowner Loans Be Used For?
Secured homeowner loans are usually taken out to borrow more significant sums of money and for more extended periods of time than with a regular personal loan. Some people borrow these large sums to make improvements to their home, i.e. to add value to their property with an extension or big renovations. Secured loans can also be used for debt consolidation, as it could cut the amount of interest that you pay on smaller unsecured debts quite dramatically. Remember, debt consolidation does not make your debts go away, it just combines them into one payment. If you are in debt, we recommend that you seek free debt advice before taking out a homeowner loan, as it isn’t risk-free.
Alternatives To Secured Homeowner Loans:
- Remortgaging – This alternative will help to free up some cash from your property. This could include potentially high upfront fees, however, and will lead to paying interest for longer on the total amount owed.
- Unsecured personal loans – If you want to borrow a smaller amount, or you’re unsure about securing a debt against your home, then an unsecured loan may be the perfect alternative. These loans may also come with lower or similar interest rates.
We always encourage you to investigate all of your options before signing any loan agreement. In some cases, however, Personal Loans Now credit for homeowners may be the perfect option for you.
Why You Should Choose Personal Loans Now – Homeowner Loans Direct Lenders:
- You could borrow between £1,000 – £25,000
- We provide an instant decision on all of our loans
- You can apply with a poor credit rating
- We offer high acceptance rates
- Receive the money into your bank account the same day, if approved
- We have helped over 30,000 customers