What You Should Know About Homeowner Consolidation Loans

Compare & Save Today.
Type your loan amount:
Preferred repayment term:
Years
Approximate value of your property:
Size of your current mortgage:
Describe your credit history?
Related Articles.
Expert Guides

Your Questions Answered.

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

If you are considering consolidating your high interest debts into a single, secured loan, make sure you have all of the information ahead of time. The more you know about homeowner consolidation loans, the better prepared you will be to compare loan products from different lenders. Moreover, make no mistake; it is very difficult to get the best possible deal without comparing.

image one

Homeowner consolidation loans are straightforward in terms of what they offer. The challenge is determining which lender is offering you the absolute best deal. Before you can figure that out however, there are some important things you need to know about how secured loans work.

Equity and LTV

A debt consolidation loan for home owner financing is based on the equity in the borrower's property. Assuming you own your own house, you have equity equal to the difference between the outstanding balance on your mortgage and the retail value of your property. An outstanding balance of £40,000 on a home worth £100,000 results in equity of £60,000. The equity in your home represents the maximum amount you shall be allowed to borrow. However, do not stop there.

Borrowers also have to consider what is known as the loan-to-value (LTV) ratio. This is a number that tells you how much of your equity you can borrow. Using our previous example of £60,000 in equity, a 100% LTV will allow you to borrow the full amount. A 75% LTV will allow you to borrow only £45,000. It is important to pay attention to both your equity and lender LTV ratios so that you are not caught off guard when you're offered a loan deal.

APR and Representative APR

The next thing you need to know is the difference between the standard annual percentage rate (APR) and representative APR. Your standard APR is the amount of interest you will pay on the outstanding balance of your loan every year. Representative APR is more than that. It is a combination of your annual interest rate and all of the associated costs of borrowing.

Why is this difference important? Because the representative APR is a more accurate measure of how much you will pay over the course of a secured loan. Nevertheless, understand that you are not guaranteed to get the representative APR advertised by a bank. The law only requires lenders to approve 51% of their applications on that advertised rate. The remaining 49% can be approved at a higher rate.

Your Equity as Collateral

As attractive and helpful as debt consolidation loans are, they are not without risk. Do not forget you are using the equity in your home as collateral against your borrowing. Should you be unable to make your monthly payments, your bank can repossess and sell your home to recover their money. Also, keep in mind that a debt consolidation loan is entered as a second charge on your property.

A second charge means the lender making the debt consolidation loan is second in line behind your primary mortgage holder. Should your house be sold, the primary mortgage holder is paid first. Whatever is left goes to the lender that made the consolidation loan. If there is not enough to cover your debt, you will be responsible for paying the balance out of pocket.

As long as you understand the risks and implications of debt consolidation, you should consider the option as a way of retiring high interest debt. Used properly, consolidation loans are a good way to gain control of your personal finances and budget. Used improperly, they can get you in severe trouble that is worse than what you are dealing with now.

The expert advisers at Secured Loan Expert can help you compare homeowner consolidation loans side-by-side and help you through the entire lender and loan selection process. Once the best loan deal has been found we will make the application on your behalf ensuring that all the paperwork is in order and that your case is presented to the lender in exactly the way they like it ensuring the best chance of a successful outcome. With our help you are sure to get the debt consolidation loan that is right for you.

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.

Call for FREE from Mobiles and Landlines:

01707 397463

or

Email us Apply Online
3.75%