Using secured loans

One of the most common types of secured loans are those where the security used is your property. These may typically be known as ‘homeowner loans’.

• these are loans which tend to be for larger sums of money - typically in excess of £5,000;
• loans secured on your home may be for just about any purpose you want,  perhaps to carry out home improvements, a holiday, family wedding, to reduce monthly outgoings by debt consolidation or a new car etc;
• the maximum amount you may typically be able to borrow using these types of loans, may depend on the amount of free equity you have in your property;
• loans secured on your home work on the basis that the borrowing is guaranteed by the equity - if you were to default on the loan, your property could be sold and the proceeds used to pay the amount borrowed, plus any interest, back;
• the title deeds of your property may typically be held by the company who provided your mortgage and this would always have to be paid off first;
• as a rough guide, if your property is worth £150,000 and you have an outstanding mortgage of £100,000 then the amount you would have left over (your equity) if the house was sold and the mortgage paid off would be around £50,000 (ignoring the costs of the sale itself);
• homeowner loans typically carry a more attractive rate of interest than unsecured loans or money borrowed using a credit card;
• how much your homeowner loan actually costs you in interest will be determined by your credit rating - the better your rating is, the more attractive your interest rate may be;
• we may be able to help even if you have been refused credit before;
• while securing your loan on your home may offer a flexible and easy means of getting the funding you are looking for, by accessing funds tied up in your home, you may wish to bear in mind that your home could therefore be at risk should you be unable to meet the repayments;
• our service can connect you with lenders who do not deal directly with the general public;
• we may therefore be able to help you get an attractive secured loans deal for your own very individual circumstances.