A Quick Guide to Homeowner Loans

A homeowner loan, sometimes known as a secured loan, uses the equity available in your main residence as security against a personal loan of normally between £3000 and £100,000. This done via a charge on your property deeds and is registered at the land registry by the loan provider.

This can make very good sense as obtaining unsecured personal loans in excess of £15000 can be difficult and unsecured loans over £25000 are almost non existent. Remortaging is another option, as are further advances on existing mortgages - both of which are also secured, but in many cases these are not available due to personal circumstances including poor credit.

Interest rates are now very competitive and low rate secured loans can easily be found via our services above. If you are a "premium" customer with no adverse credit and a low "loan to equity value" you can expect to pay only 1% more than the very best high street unsecured loans. At present this can be as low as 6.9%.

Homeowner loans can be used for any purpose including Debt Consolidation, Home Improvement, Second Home, Car Purchase, Motorbike Purchase, Caravan or Motorhome, Boat Purchase, Holiday, Wedding, Household Goods, School Fees, Legal Fees, Medical Fees, Bridging Loan, Business Loan, Mortgage Deposit being the most common. It is possible to borrow up to 125% of the value of your property subject to equity.

In summary a homeowner or secured loan can be a good alternative to remortgaging in certain circumstances, especially if you have poor credit or are self employed, and can be tailored to the repayment term that suits you regardless of your existing mortgage term. It could be said that if you have equity in your main residence and need to borrow then why not consider using it via a cheap rate homeowner loan if no unsecured alternative is available.

AdviceOnline have partnered with several high profile national loan brokers to provide its loan finder service . If you are looking for a low APR secured loan then using this service will ensure that most options are compared and only the most suitable product is recommended. The service is free and only takes a few minutes to use if you want to find the best deal.

If you are unable to make the payments of any loan you should contact your lender immediately as they will normally be able to make special arrangements, including low payments and holidays, to ensure that you can meet your commitment. There are also many voluntary organisations that can help in these circumstances.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.