What is the difference between a mortgage and a homeowner loan?
Not too much. Homeowner loans, or secured loans, are in affect simply smaller additional mortgages. For those who own their home outright, a homeowner loan would be a first charge mortgage, allowing them to unlock some of the equity in the property. This may be the right choice for those looking to invest in more property or to even enter the buy-to-let market. For those who already have a mortgage, a homeowner loan would be a second charge mortgage. This would be an extension of the existing mortgage - for example someone with a loan-to-value mortgage of 70% would have the potential to unlock a further 30% of the house's equity.
The homeowner loan, like a mortgage, is also available on a fixed rate and a tracker rate, meaning they can be suited to your specific financial needs.
The homeowner loan, like a mortgage, is also available on a fixed rate and a tracker rate, meaning they can be suited to your specific financial needs.
Will I have to change my current mortgage?
No. With the right advice you can find a homeowner loan that can work with your existing mortgage. A good broker will be able to find a balance for both debts. Millions of people in the UK have taken a homeowner loan and have seen their lives improve drastically. Because the loan is from your home's equity you are simply using money you already own.
Isn't a homeowner loan the same as a remortgage? Why don't I just do that?
A homeowner loan is an extension of an existing deal, a remortgage is a whole new deal altogether. A homeowner may be very happy with their mortgage deal, or may be near the beginning of their term, so would find it hard to get a better deal. Also, with raising fixed rates and higher base rates, first charge mortgage rates may be less tempting as time goes on. A homeowner loan may also be able to be more flexible with your financial situation, being secured on your property.
Why choose a homeowner loan now?
A homeowner loan is one of many ways to borrow money, but it is one of the safest forms of borrowing. The UK housing market is still at a peak, so there has never been a better time to take an advantage of steep house price rises we have seen over the last decade. Many house prices in the UK have seen considerable rises of late, and a homeowner loan would be the perfect way to cash on the boom.
Also, for those homeowners who have had difficulties finding financial help due to bad credit a homeowner loan would be the best way to not only relieve pressure, but also to improve that bad credit. Because a homeowner loan is secured on the property, rates can be considerably lower than them of credit cards or unsecured loans. This means paying off a homeowner loan is easier - payments that will gradually improve any bad credit.
No. With the right advice you can find a homeowner loan that can work with your existing mortgage. A good broker will be able to find a balance for both debts. Millions of people in the UK have taken a homeowner loan and have seen their lives improve drastically. Because the loan is from your home's equity you are simply using money you already own.
Isn't a homeowner loan the same as a remortgage? Why don't I just do that?
A homeowner loan is an extension of an existing deal, a remortgage is a whole new deal altogether. A homeowner may be very happy with their mortgage deal, or may be near the beginning of their term, so would find it hard to get a better deal. Also, with raising fixed rates and higher base rates, first charge mortgage rates may be less tempting as time goes on. A homeowner loan may also be able to be more flexible with your financial situation, being secured on your property.
Why choose a homeowner loan now?
A homeowner loan is one of many ways to borrow money, but it is one of the safest forms of borrowing. The UK housing market is still at a peak, so there has never been a better time to take an advantage of steep house price rises we have seen over the last decade. Many house prices in the UK have seen considerable rises of late, and a homeowner loan would be the perfect way to cash on the boom.
Also, for those homeowners who have had difficulties finding financial help due to bad credit a homeowner loan would be the best way to not only relieve pressure, but also to improve that bad credit. Because a homeowner loan is secured on the property, rates can be considerably lower than them of credit cards or unsecured loans. This means paying off a homeowner loan is easier - payments that will gradually improve any bad credit.
Source: www.securedloancentre.com
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