Secured home owner loans can be a very beneficial way of borrowing for people who own their own home. As you are offering your home as a guarantee that you will maintain the repayments, the lenders are much more willing to offer lower interest rates or take a greater risk.
This could mean lending where the traditional banks and unsecured loan providers fear to tread. Typically home owners who offer their home as security can obtain larger loan amounts, better interest rates or obtain a loan even though they may have bad credit.
Below are some common scenarios where we have arranged secured homeowner loans, one of which might apply to you.
- Where a bank or mortgage lender won’t lend due to insufficient income or loan purpose
- Home improvement loans – even where the property is not yet mortgagable
- Loan required as a capital injection into a business
- A loan to buy out a business partner or to fund a divorce settlement
- Bridging and short term loans are needed to fund a project or a property purchase
- Loan needed to pay personal or business tax bill
- Consolidation loan to help pay off expensive credit and reduce monthly payments
- Loan needed for a person who does not yet have trading accounts for their business
- A loan where the borrower has had arrears and bad credit but needs money now
- Loan to pay of a debt management plan, and Individual Voluntary Agreements or to clear a bankruptcy
Naturally there is a trade off, in order to obtain preferential terms, you are putting your home at risk. However, for many borrowers it is the preferable or only option available and it is sensible to consider taking out some form of income protection in the event of your income reducing due to accident, sickness or losing your job.