Loan Finder

Home Loans

Home loans are also known as homeowner loans, home-owner loans or second charge loans. They are secured loans, as your house is used as security for the lender. This means that if you default on your repayments your home may be repossessed to repay what you owe.

Home loans are only available to those people who are currently homeowners with a mortgage. The amount you will be entitled will depend on what your property is worth, what your mortgage balance is, your previous credit history and your combined salary if it is a joint application. If you have a joint mortgage then the secured loan will be in both names too.

Some lending companies will offer up to 125% of the value of your house, whilst others will offer a lower % depending on how much your home is currently worth. Because home loans are secured you can usually borrow a larger amount of money than with an unsecured loan, and generally have a better rate of interest and a longer repayment term too. It is not unusual for homeowners to borrow between £5000 and £250,000 for a home loan. It depends on the amount you borrow as to how long it takes to repay the home loan but repayment terms range from 5 years to 25 years as a general rule.

Loans for home owners can be used for any kind purpose that you require. Many are used as home improvement loans to enable the homeowner to make repairs, extend or re-furbish their house. Things that can be done to improve your home and increase its value include loft extensions, building a conservatory, a kitchen re-fit, a new bathroom suite, garden landscaping or a new garage.

The home loan doesn't have to be just for the home though, you can use it to purchase a new car, finance a holiday, wedding or honeymoon or even use it for cosmetic surgery. Once your loan application has been accepted it is your choice what you do with the money.

There are many different companies who can offer secured home loans. It is always worth investing some time to compare all the offers available to you and find the most attractive deal for your financial situation. More often than not your best deal may be with your current mortgage lender, but this may not always be the case so do spend some time investigating, it could save you a lot of money in the long run.

Providing you have a good credit history, your home loans application could be completed within 3-4 weeks. If you need a bad credit loan there are still companies that will be prepared to lend money for a secured home loan, but it may take longer to arrange and you will invariably pay a higher rate of interest overall.

Home loans often work out the most cost effective way of borrowing money and can be a great option for getting finance. However you have to be aware that you do run the risk of losing your home if you cannot manage to keep up with repayments, so only borrow what you need and make sure you can afford the repayments before accepting.

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