If you want to see the best lenders for home equity loans, you can without your credit file being searched. At Personal Loans Now, we scan the market for the best rates, finding cheap home equity loans that make a difference. Borrow between £10,000 and £250,000 securely today with our easy to use application online. Click apply now, and we can find you the best home equity loans available.
What is a Home Equity Loan?
Home equity loans are usually a type of borrowing a homeowner would take against their property. The equivalent would be having a second mortgage. Home equity loans allow you to borrow up to £250,000, secured against your property. This will give you manageable monthly repayments. You can spread a home equity loan over 10 years, allowing you to have plenty of time to pay the loan back. We have access to other direct lenders who can offer cheap home equity loans that make a difference for you.
Why Should I Take Out A Home Equity Loan?
There are many reasons an applicant would apply for home equity loans, most commonly for home improvements. This is where you can provide your home with an uplift to potentially increase the value. Because of the large sums involved, taking out a home equity loan should be carefully considered. As they are a secured loan, the loan amount will be secured against your property. If in the event of any missed payments or even defaulting, you would be at risk of having your home repossessed. Having the option to take out a home equity loan is ideal when you have no other options. This is especially beneficial if you need a larger sum than you can apply for with unsecured loans.
How Can I Be Eligible for Home Equity Loans?
To be eligible for a home equity loan, you’ll need to meet the following minimum requirements:
- Are aged 18 years or over
- Are a current UK resident
- Have a UK bank account
- Have a regular source of income
If you can meet the above criteria, we can look to help you find the best home equity loans available. Please note, meeting these requirements is not a guarantee of loan approval. You will still need to undergo a credit search and affordability checks as part of your application. A credit check will only be conducted after you have seen the loan offers available to you.
Cheap Home Equity Loans through Personal Loans Now
At Personal Loans Now, we provide cheap home equity loans that provide low rates of interest. Applying through us will provide you with many advantages:
- Fully Online Application – You can apply completely online for home equity loans. No waiting for paperwork to sign.
- Low APR Rates – you’ll find the lowest interest rates available for you with a home equity loan.
- High Acceptance Rates – we are proud of our high acceptance rates, approving 50,000 loans for applicants just like you already.
- Same Day Funding – receive the money you need on the same day once approved.
- Instant Approval – once we receive your application, you’ll get a decision in just 90 seconds.
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If you want an easy way to compare home equity loans online, look no further than Personal Loans Now. We’ll find you the best available deals.
Can I Get Home Equity Loans with Bad Credit?
If you have bad credit, then you may still be able to apply for home equity loans through us. We consider your whole finances, so we can see your affordability as well as your credit score. We’re happy to offer higher acceptance rates than other lenders, while still committed to responsible lending. If we cannot approve your loan, it will be because of poor credit and no proven affordability. We’ll also connect you with direct lenders who are best placed to provide you with bad credit loans.
Please be aware that if you are approved with bad credit, this could mean the rates of interest are less favourable. It can also mean the repayment terms are more than you originally wanted. This is because the lender will try to make a compromise with the loan application you’ve made. They will still look to help you with some or all of the funds. Some lenders won’t be able to offer you more than £7,500 for a bad credit loan. You will need to consider your options if you cannot get all the funding you want.
Secured Home Equity Loans Vs Unsecured Loans
If you’re unsure if a home equity loan is the right choice for you, you’ll need to consider what you can afford. You also need to check you’re happy with the loan being secured against any personal assets. For example, where a home equity loan needs to be secured against your property, an unsecured loan doesn’t. The only restriction with unsecured loans is the amount you can borrow. Anything over £25,000 needs to be a secured loan. You should think about how much you really need. If you can borrow less to achieve what you want, unsecured personal loans may be a better option for you. If you need to borrow more than £25,000, use our secured loan calculator to see what the repayments and interest will be.
Home Equity Loans FAQs
Can I Repay a Home Equity Loan Early?
Yes, if you do want to repay your home equity loan, most lenders will be able to honour your request. You will need to check in the credit agreement if there are any charges connected to paying off a loan early and contact the lender directly if you are unsure. The good thing about settling a home equity loan early is that you can sometimes get a refund on the interest charges as you’ve settled the loan quicker than planned. This is subject to the lender’s terms and conditions so you will need to check the credit agreement carefully.
What are the Interest Charges on Home Equity Loans?
At Personal Loans Now, we charge a fixed RAPR (representative annual percentage rate) against the loan amount. This is at 39.7% but you may find other lenders will charge anywhere between 9.9% – 99.9% and also offer fixed rates as well as variable rates. If the lender charges a variable rate, this means the interest can increase as well as decrease. This is much like on a credit card. If you’re unsure which rate of interest you ideally want, you’ll need to check the loan offer before agreeing.
Can I Get a Home Equity Loan without a Credit Search?
No, you will need to undertake a credit search as part of your home equity loan application. This is because as FCA authorised lenders, we need to ensure you can afford the loan you’ve applied for. If your credit rating is poor along with low affordability, you’ll need to assess your finances. You’ll need to think carefully before looking to commit to further borrowing. If you do find any lenders offering home equity loans with no credit check then you should avoid them. Only use authorised lenders like those we can connect you with.
What Happens if I Fall into Financial Difficulty During a Home Equity Loan?
If you fall into financial difficulty whilst paying for a home equity loan, you should contact the lender. In most cases, a lender will be able to help make arrangements with you if you can’t afford repayments. However, as per your credit agreement, this may incur penalty charges or even legal action. The lender can recover any losses, including requesting the full amount of the home equity loan. We recommend speaking to the Money Advice Service or Citizens Advice, who can help with free impartial advice.