Unlock Your Homes Equity With A Secured UK Home Loan
Whether you want to consolidate your debts, take a well-deserved holiday or build that dream extension, then taking out a secured UK home loan product could be for you. Many people who have equity in their properties can use that to borrow money - known as a secured UK home loan. Think of it as a mixture of a mortgage and a normal personal loan. Like a mortgage the money lent is based on your property. But that's where the similarities end. A secured UK home loan lender will consider the equity you have in your home as collateral against the loan. This means the risk is less - because if you fail to repay it they can reclaim their money from your property. Because the risk is less, secured UK home loan products tend to have a lower rate of interest than a personal loan and you can normally borrow more money.
Another advantage of secured UK home loan products is that they are usually available for people who have had a chequered credit history.
How to find a secured UK home loan?
Most high street banks don't offer secured UK home loan products. But there are plenty of financial institutions that do. Many internet price comparison sites enable you to research the secured UK home loan products on the market. But if your circumstances aren't mainstream or if you feel a little nervous about committing to a secured loan, then talking to a specialist broker is probably a good idea. You'll be able to discuss all your needs - but make sure you pick a broker that has access to all the secured UK home loan products on the market.
Picking a secured UK home loan
You can use your secured UK home loan for any purpose but make sure you can afford the repayments - your home is at risk if you can't. Different providers have different conditions. For example, some might charge a penalty if you repay the loan early. The interest rate charged will not only depend on your lender but also on your credit history, the size of the loan and the amount of equity you have in your home.
Things to remember
Secured UK home loan products tend to offer better rates than personal loans but there are a few points to remember. First of all if your property already has a mortgage on it then you need permission from your original mortgage lender before your can take out a secured UK home loan. Many don't allow this practice, so check your mortgage documents or give your lender a call. Also, secured UK home loan lenders will credit check you and if you have any black marks against your name may either refuse your application or charge you a higher rate. Finally, before signing on the dotted line, make sure you can afford the repayments - your home is at risk if not.
Opting for a secured UK home loan is a big commitment - but it's also a good way to get a loan without having to pay high personal loan interest rates.
