Promise is a nationwide specialist providing Home Owner Loans between £10,000 & £2 million
Background on Home Owner loans
If you are a home owner wishing to borrow, you are in a great position. Many lenders offer preferential terms to homeowners, and because you own bricks and mortar, you may also be able to take advantage of some of the great secured loan deals available. There are even preferable lenders and products dependant on where you live. Check out Secured Loan UK
Your personal credit circumstances and the loan amount you need may dictate what type of loan you apply for. For example, if you are looking for a small loan and have an A1 credit history, a high street unsecured loan may be suitable.
Many homeowners, especially when borrowing larger amounts, choose to secure the loan on their property. Known as a secured loan or a Second Charge loan, this enables them to borrow larger amounts and spread the repayments over a longer term to make the loan more affordable. However the main advantage of a secured loan is that the lender is able to be more flexible and accept borrowers who may struggle to borrow on an unsecured basis.
Some home owners have little equity in their properties so an unsecured can be a preferred route. However, if a high street unsecured loan is not available, perhaps due to a poor credit history, there are secured loan lenders which will lend up to 125% of the property value. This can be far cheaper than an unsecured loan which accepts bad credit – such as a pay day loan.
Secured Loans can be used for virtually any legal purpose and are available for amounts between £10,000 and £2.5 million. The most common loan uses are to consolidate existing debts, home improvements or other consumer purchases. Short term secured loans can also be used to raise fast cash for business purposes or to help with the purchase of a new property.
Below are some more unusual examples of how previous clients have used secured home owner loans
- Business cash injection
- To buy vehicles or equipment
- Pay a business or personal tax bill
- Pay off a debt management plan or an Individual Voluntary Agreement
- Buy out a partner as part of a divorce settlement
- A deposit to buy another property
- Improve and extend their home
- As a short term loan to build or refurbish a property with a view to selling or remortgaging
- To raise money on a buy to let property and increase a portfolio
Call Promise to discuss the options open to you.