Tuesday, March 20, 2007

Homeowner Loans- Raise funds from your home

Owning a home in the UK opens you to varied loan prospects at competitive rates. Home being a fixed asset is the best collateral the lender can ask for. So, UK lenders prefer giving loans to homeowners. A homeowner loan is probably the best way to procure hefty amounts of loan. You can get a fruitful deal at attractive interest rates and have flexible repayment options as well. To define it, homeowner loans are loans that allow you to borrow money based on the equity of your home. Cited below are the essential features of homeowner loans.

• The home needs to be valuated
• Long procedure as legal validation is involved
• Loans available up to £100,000
• Enables to borrow from 90% to 125% of your home equity
• Flexible repayment period from 3 to 30 years
• Multipurpose loans
• Competitive interest rates
• Homeowner with bad credit can avail these loans
• Home will be seized in case of failure in repayment

Secured and Unsecured Homeowner Loans
Though the secured homeowner loans are a popular option wherein the home of the borrower is put on stake as collateral, lenders in the UK loan market offer unsecured homeowner loans as well. In the case of unsecured homeowner loans, since nothing is put as collateral, the loan amount is smaller and the loan carries a higher rate of interest, as compared to the secured counterparts. However, before going in for homeowner loans, shop around in the market, make a comparative study of the various and look for details like arrangement fees, early repayment charges, and the credit policies of the lenders.

Homeowner loans trend in the UK market
The number of properties occupied by just one person was around 20 million in 1990. The same is projected to hit 25 million in 2020. (Source: Discussion on Communities and Local Government, DCLG). The trend is reinforced by a research conducted by the Economic and Social Research Council that found that since 1971, the population of UK has increased by 5%, but the number of single households has increased by 31%. More homes mean more people who can go in for availing homeowner loans. This is an indicator of boom to be expected in the market for homeowner loans.

Summary: Homeowner loans give homeowners in UK the freedom to procure hefty loan amounts at competitive rates of interest. The loan amount is based on the equity of the home, exclusive of the running mortgages and debts on the home.


Homeowner Loan - model loan for the homeowner

Secured loans are generally termed homeowner loans. This is because the collateral used for homeowner loans are typically homes. However, in truth, collaterals can be anything of value. With a homeowner loan, interest rates can be variable, unlike unsecured loans where rates tend to be fixed.

With homeowner loans, one can get a longer repayment term as well. However, the borrower may also have to pay extra charges, like a property valuation fee.

The interest rates are comparatively lower with a homeowner loan. This has mainly to do with the presence of collateral in the case of this loan type. The collateral assures one thing to the lender – the loan will be recovered one way or another. If the borrower defaults, the collateral can be sold off to recoup the loan amount.

The greatest benefits with a homeowner loan are that the money offered can be repaid over a distinctly greater time period, in comparison to unsecured personal loans. The repayment period can stretch up to thirty years. The amount borrowed is dependant on the equity in the house. There are cases where the borrower can get more, but that usually warrants elevated interest rates.

Of course, the elongated time-frame engenders a lot of other benefits for the borrower. As the loan can be paid back over a greater duration, it becomes easier to manage the monthly outflow. This assists in supervising the finances better. However, there is a downside to this. Should the loan not be repaid in time, there is a clear chance that the borrower could lose his home.

There are several avenues to procure a homeowner loan. While the traditional banking institution is still a major player in this regard, other options are coming up too. Private lenders are one. The other is the online option, which is arguable the best in terms of choice and customer convenience.

Summary: A homeowner loan necessitates the borrower to put up collateral – his home - as security. These loans have a longer repayment term, and come with slight lower monthly instalment rates than unsecured loans.


Home loan– Invest in your dream

A secured home loan is granted against collateral. These loans are offered against the borrowers' home which act as a security against the lending amount. The loan amount can range from £25,000 to £1,000,000. The loan period is also pretty extensive and can stretch from 5 to 25 years.

Borrowers can borrow up to 25 percent more than the value of their home if they are going in for a second mortgage. For example, if your house is worth £150,000 and you owe £150,000 on mortgage payment, this loan programme would allow you to borrow £25,000 over and above the loan amount.

There are many lenders who offer a 125 percent equity home loan. By and large, this is a credit score driven loan programme. But it is quite possible that each lender will have its own terms and guidelines. Borrowers have to have a decent credit score in order to qualify for this loan type. Additionally, borrower's financial record will determine the maximum loan amount he may qualify for and the maximum cash in hand you may receive. On top of that, a number of home loan lenders may require seasoning on the length of time the borrower has lived in the house. The minimum time is presently gauged at three months.

As far as property appraisal is concerned, most 125 percent home equity loan lenders do not require you to obtain one. Usually, they use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home for over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (AVM) can be used. An AVM is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighbourhood.

A host of advantages are attached with secured home loans:

* As these loan deals are offered against a security which covers the risk factors, it is possible to get it at a low interest rate.
* Repayments terms and conditions are quite flexible and thereby adds to its appeal.
* Easy availability of these loans has made them popular among borrowers. These loans can be applied for through the internet as well.

It is really up to the borrower to see if this loan type is feasible for him or not.

Summary: Everyone dreams of getting a foothold in the property ladder. If you are a homeowner and a UK resident, then you have a lot of options in front of you. Depending on your personal circumstances and the amount of money you need, you can avail a secured or an unsecured loan.


Homeowner Loan - the homeowner's most viable choice

Secured loans require the borrower to put up an asset as collateral against which the loan amount is issued. The popularity of this loan type is increasing in the UK. However, there is a flipside to this. There have been an astonishing number of repossessions in the country, due to non-repayment of the loans.

This loan is also loosely called a homeowner loan, as most of the assets that are put up as collateral happen to be homes. The advantages with taking a homeowner loan are several. The amount one can borrow with this loan is big - the typical figure is £75,000. Even this is a flexible amount though. With a collateral of greater value, one can always seek (and get) a bigger amount. Also, there is the added advantage of a long repayment term, which, at times, is as long as thirty years. Secured loans are ideal for circumstances that necessitate a big amount of money. The longer repayment term helps the borrower to manage finances better.

There are disadvantages with a homeowner loan too. The most glaring one is the threat of repossession of property, in the event of a repayment default from the borrower's side. Secondly, availing a secured loan means one has to possibly go through endless paperwork. The expediency factor is not there with this loan.

There are several avenues through which one can get a homeowner loan. Some of the standard sources are banks; building institutions; private lenders, and the Internet. Of these, the first two have been long established in the market and have managed to gain the trust of the customers. Private lenders are a more recent addition that has come about owing to specialised customer needs. However, for sheer customer comfort and convenience, there is nothing as feasible as the Internet.

Borrowers taking secured loans should do so with discretion and after an honest evaluation of their financial base. With these loans, the worst-case scenario is indeed the nastiest - the loss of a home.

Summary: homeowner loans are gaining popularity in the UK market today. However, one should take these loans with discretion, as the price for non-repayment is a massive one - repossession.


Secured homeowner loans - loans for the homeowner

A secured loan is freely termed a homeowner loan. A secured homeowner loan necessitates a home to be put up as collateral by the borrower in order to procure the amount. Procured against collateral, generally a home, Secured homeowner loans have lower interest rates compared to unsecured loans. This leniency from the lenders is owing to the presence of collateral in the case of a secured homeowner loan. If the borrower defaults on the repayments, he can lawfully lose the collateral to the lender.

With these loans, one can borrow a distinctly greater amount than what one does with an unsecured loan. The amount dispensed can vary between £5000 to £75000. The latter is flexible. If the value of the security is greater than that amount, there is likelihood of the borrower being given an even bigger amount. As far as the value of the collateral is concerned, it can be of equal or greater worth than the loan amount.

The usage of an unsecured personal loan is not limited. The money can be deployed for wedding expenses, home renovation, launching a new business venture, children's' education etc. Typically, the repayment term is around three years for little amounts. For a distinctly larger loan, it can stretch up to 30 years.

Banks, building societies, private lenders and online lenders provide secured homeowner loans. For quickness and choice, the online lender is the most feasible. One can access different lenders in a matter of a few hours, by logging into their respective websites. These websites offer different quotes and studies. There are also facilities like loan and repayment calculators, which may help the borrower avail a better deal.

A borrower applying for a secured homeowner loan may have to provide a few details, including his name; address; contact information; telephone number; email address; amount he is applying for; value of the security; the loan's purpose etc.

Summary: Secured homeowner loans can be availed by putting a home as collateral against the loan. These loans have lower interest rates and a longer repayment term.


Secured homeowner loan: really cost-effective and easy to deal with

You had to work day in and day out to be a homeowner. Now it is the turn of your home to work for you round the clock. And truly it is doing so by giving you shelter and protection. But surprisingly this is not all that your home can do for you. It can provide you with fund in the moment of dire need. For that you have to take secured homeowner loan, one of the cost-effective modes of fund raising.

Secured homeowner loan is offered against the home of the borrower. As a rule you should have sufficient amount of equity available in your home to take this loan. However, there are some lenders who get ready to offer this loan to homeowners who have no equity available in their home.

In sharp contrast with other type of loans, secured homeowner loan comes with a bundle of benefits that make it really cost-effective. It carries low interest rate which curbs the cost of the loan to a greater degree. Again this low interest rate while combined with long loan period makes the repayment instalment small. All these features make it easy to deal with the loan.

Borrowers of secured homeowner loan can enjoy flexibility in all the terms and conditions of the loan. Any missed payment will not be treated with severity; rather you can clear it along with the next instalment. You can avail the loan despite your poor credit too. Above all, this loan gives you the chance to unleash the equity tied-up in your home.

Summary: Your home can be a good source of cash if you take secured homeowner loan against it. This loan comes with a bundle of benefits that make it really cost-effective. Its flexible terms make it easy to deal with.


Secured loans for homeowners: Your home is your heaven

"Give shelter to your dreams with the help of your home." Homeowners are definitely very fortunate in terms of availing financial aid to fulfil their dreams and desires. Home is an asset for the homeowners. They can utilise the equity in their homes to get financial advantages through secured loans for homeowners. Lenders feel more than happy to offer secured loans to homeowners because the loan amount is secured against the home. Lenders know that they can seize or sell the home in case the homeowner fails to repay the loan on time. So, the lender is sure he will be able to recover the loan money from the borrower. This confidence of the lenders and lower risk perceived enable the borrowers receive the following privileges:

* low interest rate
* flexible monthly instalments
* easy availability
* approval for a large sum of money

The loan amount that you can receive depends upon the equity value of your home. Greater the equity, greater the sum of money you can receive. One can get up to 125% of the property value as secured loan. So, the lender will first get your home value assessed and then decide the loan amount to be approved. However, a homeowner should not get too tempted by his dreams and desires to endanger the home. Take care to apply for the amount that is extremely necessary. Be sure that you are able to bear the monthly instalments comfortably. Always keep in mind that your home is under constant threat of being repossessed by the lender in case you fail to repay on time.

A homeowner is free to use the secured loans for homeowners for any purpose, such as making home improvements, meeting expenses of higher education, arranging for a wedding, purchasing a stylish car, managing your debts or anything under the sun.

Summary: Homeowners can take advantage of the secured loans to fulfil their needs and desires. The equity in the home can be utilised to avail loans with easy and flexible repayment terms.