Homeowner Loans

our best secured loans
loan provider typical APR max loan term range 1 Sterling Credit 7.6% £75,000 3-25 yrs 2 First Plus 7.9% £100,000 5-25 yrs 3 Picture 8.4% £100,000 10-25 yrs 4 Nemo 10.9% £100,000 5-25 yrs 5 Paragon 11.3% £150,000 5-25 yrs

What is a homeowner loan?

Homeowner loans are secured types of borrowing. The lender allows you to borrow money but only if you provide security against the debt. The types of security you have to provide are equity in your house or maybe a car. Homeowner loans are one of the fastest growing forms of lending in the UK and here we explain what they are, what you need to think about before applying for one, and how you go about doing so.

Homeowner loans are mainly for people looking to borrow a larger amount of money, between £15,000 and £100,000, and want to repay the debt over a longer period of time (more than 10 years). Homeowner loans are suitable for people with a bad credit record or if they are looking to release equity in their property.

Another name for homeowner loans is second charge mortgages. This is because most people that take out these products already have a mortgage. Homeowner loans are more expensive than mortgages because they are viewed as a greater risk by the lender. A homeowner loan will not affect your existing mortgage in any way at all.

If you are using your house as security you generally have to have equity in it, although some lenders will now lend you upto 125% of the value of your house as long as you meet other key criteria such as having a minimum monthly income.

What to consider when applying for a homeowner loan?

Finding the right homeowner loan can be difficult as there are so many options available. It is easy to go to the first place that springs to mind such as your bank. However they are unlikely to have the best products and they are relying on you not shopping around. The difference in the amount you have to pay between the best and worst loans can be very high so it is worth taking a bit of time to find the best homeowner loan for you.

Firstly, make sure you have sufficient equity in you house by getting an up to date valuation as well as a statement from your mortgage company showing how much is outstanding on your mortgage.

Secondly, make sure you budget properly. Write down your ingoings and outgoings and make sure you properly understand how much you can comfortably afford monthly to spend on a homeowner loan.

You can use our loan calculators to work out approximately how much you can borrow based on the monthly payments you can afford. This will enable you to make sure that the size of the homeowner loan you can afford to pay is sufficient for the purposes you need. Do not borrow more than you need, or more than you can comfortably afford to pay back.

See Myloanchoices loan calculator

Then use the Myloanchoices service to find the right homeowner loan for you.

Homeowner loans from Myloanchoices?

If you own a property outright or have a mortgage, we can find you a competitive homeowner loan whatever your circumstances. You can borrow up to £100,000 over a 10 year repayment term even if you have a bad credit record.

The application process is easy with quick quotations provided over the phone. It is free and there is no obligation to apply for any of the homeowner loans recommended.

See Myloanchoices best buy secured loans