In-depth guide to Secured Loans | Homeowner Loans
- 4 years ago
This video explains what secured loans are and how they work.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Secured Loans: https://www.solution-loans.co.uk/secured-loans/
- Homeowner Loans: https://www.solution-loans.co.uk/homeowner-loans/
- Debt Consolidation: https://www.solution-loans.co.uk/debt-consolidation-loans/
- Home Improvements: https://www.solution-loans.co.uk/home-improvement-loans/
- A guide to secured loans and how they work: https://www.solution-loans.co.uk/blog/guide-secured-loans-how-they-work/
- Why debt consolidation loans are so popular: https://www.solution-loans.co.uk/blog/debt-consolidation-loans-popular/
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▶️ VIDEO TRANSCRIPT
Secured loans open up the opportunity to borrow much larger amounts at lower interest rates than other forms of lending. They do this by using a borrower’s home as security (hence they are often called homeowner loans). Loan amounts vary considerably but many lenders will offer secured loans of between £5,000 and £250,000 depending upon the market value of a house and how much equity there is. Compared with unsecured personal loans, choosing a secured loan could be a sensible choice particularly when most banks only offer personal loans of up to £15,000.
Because the loan is backed by a property as security, homeowner loans are available to many people with lower credit ratings and interest rates are also lower. There are also much longer repayment schedules available.
Homeowner loans are otherwise known as second mortgages or second charge loans because the borrower must already have a mortgage on their property. They are not available to people who own homes outright who should consider remortgaging if they want to borrow large sums.
These secured loans are more complicated forms of finance than unsecured loans because of the use of a property as security. As a result, they take longer to set up than any other form of finance with the exception of mortgages.
A homeowner loan gives a buyer access to much larger sums than a typical unsecured loan. Even if you have a poor credit rating - including defaults, CCJs or mortgage arrears - you may still be able to apply for a homeowner loan and take advantage of more competitive interest rates than other forms of finance. You can stretch your repayments out over much longer periods - some-times as much as 25 years - and be able to plan your finances over the long term accordingly.
How much you’ll be able to borrow depends on, among other criteria, the loan to value (LTV) of the loan. The LTV is the maximum lending value of the financial product as a ratio of the secured property’s value.
------
▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Secured Loans: https://www.solution-loans.co.uk/secured-loans/
- Homeowner Loans: https://www.solution-loans.co.uk/homeowner-loans/
- Debt Consolidation: https://www.solution-loans.co.uk/debt-consolidation-loans/
- Home Improvements: https://www.solution-loans.co.uk/home-improvement-loans/
- A guide to secured loans and how they work: https://www.solution-loans.co.uk/blog/guide-secured-loans-how-they-work/
- Why debt consolidation loans are so popular: https://www.solution-loans.co.uk/blog/debt-consolidation-loans-popular/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
Secured loans open up the opportunity to borrow much larger amounts at lower interest rates than other forms of lending. They do this by using a borrower’s home as security (hence they are often called homeowner loans). Loan amounts vary considerably but many lenders will offer secured loans of between £5,000 and £250,000 depending upon the market value of a house and how much equity there is. Compared with unsecured personal loans, choosing a secured loan could be a sensible choice particularly when most banks only offer personal loans of up to £15,000.
Because the loan is backed by a property as security, homeowner loans are available to many people with lower credit ratings and interest rates are also lower. There are also much longer repayment schedules available.
Homeowner loans are otherwise known as second mortgages or second charge loans because the borrower must already have a mortgage on their property. They are not available to people who own homes outright who should consider remortgaging if they want to borrow large sums.
These secured loans are more complicated forms of finance than unsecured loans because of the use of a property as security. As a result, they take longer to set up than any other form of finance with the exception of mortgages.
A homeowner loan gives a buyer access to much larger sums than a typical unsecured loan. Even if you have a poor credit rating - including defaults, CCJs or mortgage arrears - you may still be able to apply for a homeowner loan and take advantage of more competitive interest rates than other forms of finance. You can stretch your repayments out over much longer periods - some-times as much as 25 years - and be able to plan your finances over the long term accordingly.
How much you’ll be able to borrow depends on, among other criteria, the loan to value (LTV) of the loan. The LTV is the maximum lending value of the financial product as a ratio of the secured property’s value.