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, providing 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 that enables 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 £25,000 and £100,000, with periods up to 7 years in which you can repay. They are often used to borrow larger amounts of money for an extended period of time and can offer a solution to consumers with a low or poor credit score where their credit report may not be strong enough to be accepted for unsecured finance.
How Does Homeowner Loans UK Work?
When you take out secured homeowner loans, your home will be used as a form of security for the lender in question. This means that your home will be used as a form of collateral. 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.
Lenders can use a formula called ‘Loan To Value’ in order to determine how much they will lend against a certain property. This is calculated as a percentage, with the loan amount typically being a percentage of the overall value of the home in question. Lenders will have maximum percentages as part of their criteria in most cases, which you can contact the lender about 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, once again due to the lower risk to the lender, meaning low interest homeowner loans for you.
You Don’t Need A Perfect Credit Score
Due to the secured nature of the loans, you don’t need to have a perfect credit score to be approved. The risk to the lender is much lower as there is collateral involved, meaning that you are likely to be approved regardless with homeowner loans for poor credit.
Longer Repayment Periods
With longer repayment periods, your monthly payments could be lower than with an unsecured alternative. 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 via your agreed monthly payments. While 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 are 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 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 the repayments.
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Compare Homeowner Loans With Personal Loans Now
When you compare homeowner loans with Personal Loans Now, we’ll provide you with real-time rates on your home and the associated interest. Due to the nature of the loan, we may still be able to lend to those with poor credit provided you fully own the home you are offering as collateral, and that you are in a comfortable position to meet the repayments.
We are an FCA-authorised lender, meaning you can apply with the confidence that we are responsible in our practices. 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, but also take time and care to follow additional recommendations to ensure the lending process is as stress-free, seamless and trustworthy as possible for all of our applicants. If you take out a loan with us but struggle to meet repayments, we will work with you to find a solution, and guide you to free debt advice to help you regain control over your finances.
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 are a homeowner, however, you could be eligible for homeowner loans for bad credit instead. We offer secured homeowner loans for poor credit to anyone that is in a financial position to manage the agreed repayments and so you may still be accepted for a loan even if your credit score isn’t the best. If we are unable to accept your application, we will provide you with a personalised table of pre-approved homeowner loans for bad credit from 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 of the applications we receive. From the simple application that you will only need to fill out once, to the approval, the process can take just a few minutes in most cases. If you are approved, the money could be in your account within just 24 hours. We aim to offer the fast, safe and secure homeowner loans to all applicants, so 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 will need to adhere to, but there are a few that all applicants must meet regardless of 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 will also need to pass any credit or affordability checks for the loan amount and repayment period you have requested. In some cases, lenders may offer you an acceptance under different terms, such as a longer or shorter repayment period.
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 a form of 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 are unable to meet repayments for any reason, it’s a risk you should take into consideration, particularly when securing the finance against your home.
Are Homeowner Loans Safe?
As with any secured finance products, homeowner loans come with some risks that you need to be aware of before applying. When you apply for a homeowner loan, you are taking out finance against your home and 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 that no applicant takes out a loan that they can’t feasibly manage under their current financial situation. If your finances change unexpectedly throughout the duration of the loan, you can get in touch with us or your lender, to work out a solution.
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, as 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.
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 are unable to approve your loan, we will provide you with a table of other trusted lenders who could, ensuring you can still get the money you need, when you need it.