As a homeowner, did you know that your home could provide you with a loan when you need money most? Here at Personal Loans Now, we offer fast homeowner loans online with high rates of acceptance. This provides an instant decision with fast pay out if you are approved. Release some of the value in your home with secured homeowner loans at Personal Loans Now.
What Are Homeowner Loans UK?
Long term homeowner loans are a form of secured finance. They enable you to offer up your home or property as collateral for the amount you’re borrowing. We offer the best homeowner loans for values between £10,000 and £250,000, with periods up to 10 years in which you can repay. They are often used to borrow large amounts of money for an extended period. This can offer a solution for those with a poor credit score, if they cannot be accepted for unsecured finance.
How Do Homeowner Loans UK Work?
When you take out secured homeowner loans, your home will be used as a form of security for the lender. This means that your home will be used as collateral against the loan amount. Most lenders will accept any form of property, providing that you either own or are paying a mortgage on it. This includes bungalows, flats and apartments, houses and cottages. The amount you can borrow will depend on the value of your property. However, in most cases, the loan consumers are seeking is less than the property price itself, for example, a £100,000 loan.
Lenders use a formula called ‘Loan To Value’ in order to determine how much they will lend against a property. This is calculated as a percentage, with the loan amount a percentage of the overall value of the home. Lenders will have a maximum percentages they can offer as part of their criteria in most cases. You’ll need to contact the lender about this directly.
Secured homeowner loans offer a number of benefits, including:
Interest Rates Tend To Be Lower
Secured homeowner loans tend to have lower interest rates. Due to the lower risk to the lender, this means low interest homeowner loans for you.
You Don’t Need A Perfect Credit Score
Due to their secured nature, you won’t need a perfect credit score for approval. The risk to the lender is much lower due to the collateral involved. This means that you are likely to be approved regardless with homeowner loans for poor credit.
Longer Repayment Periods
Your monthly payments could be lower than with an unsecured loan. This can make the loan far more manageable in the long term.
It’s important to be aware, however, that the lender can then repossess your home if you default on the loan. This is in order to pay off the remaining debt if you are unable to do so. Homeowner loans from direct lenders are an accessible way for homeowners to get money when they need it. It is important to take into account the risks associated and prepare accordingly before you apply.
- Property Repossession – If you’re unable to repay the loan on time, you will be at risk of losing your home.
- Early Repayment Charges – Some lenders may apply additional charges if you repay the loan early. This is in order to counter the interest they would otherwise lose.
- Repayment Holidays – When the unexpected happens, some lenders will allow you to take a ‘repayment holiday’. The interest will still accrue throughout this period, but you won’t have to make payments. This isn’t always possible, however, so you can’t rely on this and should always make sure you can afford repayments.
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Compare Homeowner Loans With Personal Loans Now
When you compare homeowner loans with us, we’ll provide you with real-time rates on your home and the interest. Due to the nature of the loan, we may be able to lend to those with poor credit. This is provided you fully own the home you are offering as collateral. You will need to be in a comfortable position to meet the repayments as well.
We are an FCA-authorised lender, meaning you can apply with confidence that we are responsible lenders. We conduct full affordability assessments, so you can rest assured that you’ll never take on more than you can manage. We follow all required legislation as detailed by the FCA. We also take the time and care to follow additional recommendations. This is to ensure the lending process is as stress-free, seamless and trustworthy as possible for all our applicants. If you take out a loan with us but struggle to meet repayments, we’ll work with you to find a solution. We’ll guide you to free debt advice to help you regain control over your finances.
Homeowner Loans FAQs
Can I Get Homeowner Loans for Bad Credit?
If your credit score is poor, you may find it difficult to be accepted for unsecured finance. If you’re a homeowner, however, you could be eligible for homeowner loans for bad credit instead. We offer secured homeowner loans for poor credit to anyone in a position to manage the repayments. You may still be accepted for a loan even if your credit score isn’t the best. If not accepted, we’ll give you a personalised table of homeowner loans for bad credit. This will show other lenders, meaning you could still get the money you need.
How Long Does It Take To Get A Homeowner Loan?
At Personal Loans Now, we offer instant decisions on all the applications we receive. From the simple application you’ll only need to do once, to approval, the process can take just a few minutes. If you are approved, the money could be in your account within just 24 hours. We aim to offer fast, safe and secure homeowner loans to all applicants. You can rest assured that you’ll never be left waiting.
Am I Eligible For Homeowner Loans?
Every lender has its own criteria that you’ll need to adhere to. There are a few that all applicants must meet regardless of the lender. These include:
- You must be over 18
- You must have a UK bank account
- You must be a UK resident
- You must have a regular income from employment or other secure means
You’ll also need to pass any credit or affordability checks for the loan amount and repayment period. In some cases, lenders may offer you an acceptance under different terms. This could be longer or shorter repayments for example. If you’re currently self-employed, you may need to have a guarantor attached to your application.
What Are The Risks Of Taking Out Homeowner Loans UK?
The risks of taking out a homeowner loan are the same as with any secured finance option. When you offer up collateral to secure the loan against, you risk losing the asset in the case of a default. While this will only become an issue if you’re unable to meet repayments, it’s a risk you should consider. This is particularly true when securing the finance against your home.
Are Homeowner Loans Safe?
As with any secure finance products, homeowner loans come with some risks you need to be aware of before applying. When applying for a homeowner loan, you’re taking out finance against your home. If you come to default on payments, you could risk losing your property to cover the debt. Providing you meet the agreed repayments, however, your home will remain yours.
We take care to conduct thorough affordability checks to ensure no applicant takes out a loan they can’t manage. If your finances change unexpectedly during the loan term, get in touch with us or the lender in the first instance. If you’re looking for a lower amount, a cheap unsecured loan may be a better option for you.
How Does A Homeowner Loan Differ From A Mortgage?
Unlike a mortgage, a homeowner loan is designed to offer money against a property you already own. This is opposed to securing the finance to buy the home against the property you’re looking to purchase. For this reason, the amount you borrow is likely to be much lower for a homeowner loan than with a mortgage, such as for £50,000.
We are proud to offer high acceptance rates on all loans, including our homeowner loans, with fast decisions. You will likely receive an instant decision, with payout available on the same day if approved. If we’re unable to approve your loan, we’ll provide you with a table of other trusted lenders who could. Ensuring you can still get the money you need, when you need it.