The Good - Bad and Ugly Facts of Equity Home Loans

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Secured Loan Expert is a trading name of First Union Mortgages Limited one of the largest and most trusted finance brokers in the UK.

We specialise in finding the best loans for our clients from probably the biggest selection of loan deals in the UK with over 950 different deals available at any one time. We will match your requirements with all the deals on offer, ensure that you are aware of all the costs of each individual loan before you chose to apply. We will make the application on your behalf ensuring that your case is seen by the lender in the most favourable light.

Our experts are there to ensure you get the best deal and what’s more our help and advice is free so why not take advantage of our expertise.

A homeowner loan is a personal loan taken out against the equity in your property. Also known as secured loans, these are offered in exchange for you offering your home as collateral. Securing the loan with your home enables you to borrow substantial amounts of money for long periods. Moreover, because the lender puts a charge on your home as security, it offers very good interest rates and manageable terms.

Currently you can borrow up to the maximum limit of 95% of the equity in your home.

- You can obtain a homeowner loan by first comparing the deals in our simple comparison engine and choosing the deal that suits you most. Pay attention to the minimum and maximum loan amounts offered by each deal, as this will play a role in your decision making. When you have found the most suitable loan offer just contact our friendly team of experts who will answer all of your questions, help you with your application, get pre approval from the lender, and if required arrange for a valuation of your home whilst keeping you up to date throughout the approval process until completion.

It is still possible to get a secured loan when you are self-employed. This will be dependent on your personal circumstances and each lenders’ criteria. Our team can advise you as to the exact requirements when you call us.

At Secured Loan Expert all types of credit history are considered. The decision to lend is subject to individual lender criteria and your personal circumstances. Our expert team can provide you with more information if this is the case.

No. The only note on your credit file that will exist when you make an initial enquiry will be a Quotation Search which will only be visible to you and not by other searchers.

When you make a full application then a full search will be undertaken which will show up on your file at that stage. This will be visible to other lenders.

While this process is a lot shorter than a mortgage or re-mortgage application, the exact length of time from application to you receiving the funds depends on the amount of the loan required, the loan amount to the asset value, the lender chosen and your individual circumstances.

Once the loan is approved by the lender, they will transfer the money to you typically within 48 hours if electronic transfer is the payment method.

There are no upfront fees to pay.

All fees and charges that you have to pay to take out a loan will be fully detailed to you before you make any decision to go ahead.

If you have any questions at this point just call our friendly team who will be happy to help you understand what fees may be charged.

By Michelle Tuvey.

Loan Underwriter

There is no such thing as the perfect consumer-financing tool. If there were, everybody would be borrowing money to his or her heart's content. Yet there are some forms of consumer financing that are better than others are. Equity home loans are a good example. These loans allow homeowners to leverage their equity as security for substantial borrowing. It allows homeowners to borrow tens of thousands of pounds over long periods.

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As with any form of consumer financing, the home equity loan has its strong and its weak points. We prefer to describe this as the good, the bad, and the ugly of secured loan financing. Here are the details:

The Good

The good aspects of secured home loans far outweigh the bad and the ugly. That is why Secured Loan Expert recommends these as long-term financing tools. What are those good aspects? First of all, loans are easier to come by because you are using your home as collateral. With real, tangible property acting as security against default, lenders are more willing to offer loans even with bad credit.

Second, secured loans tend to have lower interest rates and better repayment terms as compared to unsecured loans and credit cards. In conjunction with that is the potential to borrow tens of thousands of pounds up to the limits of your equity. Lastly, secured loans are flexible inasmuch as you can use the money for just about anything.

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The Bad

The bad aspects of secured loans are two-fold. First, not every lender delivers as promised. When lenders advertise loan products they tend to give as few details as possible while also making their loan products sound as attractive as they can. Yet you may discover that a lender does not offer what you expected when you initially applied. This is why it is so important to compare lenders as best you can.

Second, secured financing comes with all sorts of fees and charges attached. For example, your lender might assess a fee to cover the cost of placing a second charge on your property. Most of the time there will be administrative fees, filing fees, and charges associated with establishing a loan. All of these things add up to increase the total cost of borrowing. Make sure you ask for all the details regarding the charges and fees before you apply.

The Ugly

Despite the flexibility and financial power of equity home loans, there is one ugly aspect you really need to understand. What is it? It is the fact that you risk losing your home if you fail to pay your loan as promised. This is the whole point of using the equity in your property as collateral.

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If you are approved for a secured loan against your home, the bank places a second charge on your property. Defaulting on your loan could result in your home being repossessed and sold by the lender. Any money left over after your mortgage is satisfied will go toward paying your debt to the bank that provided the secured loan. If there is not enough to cover all of it, you will have to pay the rest out of pocket.

Also keep in mind that a default and repossession would go on your record for a minimum of six years. This could hinder your future ability to obtain credit of all sorts. It could also make it more difficult for you to rent a home or get a new job. So think long and hard before you apply for a secured loan against your property. Make sure you have enough room in your monthly budget to comfortably make payments.

Equity home loans are a great tool for covering long-term financing needs without breaking your budget. However, as with any form of consumer financing, these need to be used with care. At Secured Loan Experts, we believe the best advice we can give you is to compare loan products side-by-side and ask many questions. The better informed you are, the more likely you will be able to make a wise decision.

If you would like some FREE professional advice on any aspect of Equity Home Loans please don’t hesitate to contact our friendly team of experts.

Our team can source the best deals available from our whole of market panel of top high street and specialist lenders, help you compare the offers side by side and when you have found the most suitable deal for your needs create and submit an optimised application on your behalf ensuring that the lender reviews your case in the best possible light.

Call Us For FREE Expert Advice and the Latest Rates.

We source the best rates from the whole market

  • Borrow up to £2,500,000 Depending on the Equity in Your House.
  • Adjustable Repayment Terms from 3 to 30 years.
  • Secured Loans Can Be Used for Almost any Purpose.
  • Low Interest Rates.
  • Rapid Approval - Low Arrangement Fees.
  • Options for Homeowners with Bad Credit History.
We Will Find You the Best Secured Loan to Suit Your Individual Needs.

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