Tag Archives: homeowner
Homeowner Loans – Are They Different From Secured Loans?
Let’s face it, getting a loan can sometimes seem traumatic. Where do you go to get a loan? How much can I borrow? What sort of loan is best for me? …and i’m guessing that these are only some of the questions you’ve asked yourself recently, right?
If you’re a homeowner, it’s even worse in some respects because there’s a much wider choice available to you and yes, it includes homeowner loans and secured loans.
So, what’s the difference?
Well, the truth is – “not a lot”! There are many providers out there, lenders and brokers, that use either one or the other term, but in reality, they mean the same thing. So, if you’re looking for a loan and intend to use some of the equity you’ve built up in your property, then a homeowner secured loan could be for you. (Sorry – that means the same as homeowner loan and secured loan as well! Getting a little carried away with the choice thing there for a minute!)
If you don’t have a mortgage, ie you own your home outright, then you cannot opt for a secured loan. This is because in the loans industry, the correct technical term for a secured loan is a 2nd charge loan; so called because a mortgage is a first charge. If you defaulted on your mortgage, the mortgage lender would be able to foreclose on their loan and receive proceeds from the forced sale of your property, equal to the amount they are owed, before a 2nd charge or secured loan lender was able to claim their share of the proceeds to cover their loan to you. So, you can’t have a 2nd charge on your property if a 1st charge doesn’t exist.
Similarly, if you rent your home, ie you’re a tenant, you cannot apply for a homeowner or secured loan because you do not own the property. You will have to go for a personal loan or an unsecured loan (by another name). Confusing isn’t it?
What can I use a homeowner loan for?
The most common purpose for a homeowner loan is debt consolidation (converting lots of existing credit into one secured loan). This happens at any time of the year but is especially common just after Christmas and the summer holidays, when many people have decided that they can reduce their interest payments on credit cards by opting for a homeowner loan.
The next most popular reason is home improvements. If you’re having the builders in or even doing it yourself, you could use the bricks and mortar you already have to help you to raise the cash necessary to cover the costs of the changes you want to make.
..and other common reasons for taking out a homeowner loan are:-
– a luxurious, far off holiday – a new car, caravan or motorbike – a wonderful wedding to remember, – or just to treat yourself to something special.
So what are you waiting for? Go on, pamper yourself! A homeowner loan is easier to apply for now than ever. It’ll only take a few seconds to enquire with an online loan broker and you could have a decision in principle back to you within minutes. Of course, you’ll still need to complete and sign a credit agreement and make sure that you allow enough time for the loan to complete which is typically around 4-6 weeks. Happy hunting!
Personal Loans Homeowners, Low Interest Rates Loans
Is it a clothing shopping, car or even buy small toys children, for example, the regular food or furniture and electrical goods, shopping around with different prices, others’ various brands and different vendors, we always do, to get the best deal, simply save money. Reducing costs, we even deliberate and unintentional. This is clear when it comes to borrow money, things are no different.
For safe debt, we all know that you need to set the security important to get a larger loan approved. Although security can be provided in the form of any property you own, a number of houses that are required to vouch for a new category of loans – Personal loans Homeowner. When talking about the best deal in the market of loans to staff Homeowner loans can be more than clarifying this issue for you. The loans are intended only for those registered in your name, or a flat.
Personal Loans Homeowner require pledging your house relative against the debt and the debt. When you build your own security, but the lender make a temporary ownership until the debt paid in full. Relatives, the loans held by the lender to assure him that you will respond in full. Now that the lender take your temporary home, you need to remember that failure means the return of your back your property or simply confiscated. This is not to scare you away, but make sure you have all the information you need before applying for it yourself.
Because the presence of a high worth collateral, namely the home, the Homeowner personal loans low interest rates also contained in them. This reduces the costs involved in the process of recovery, low repayments, and therefore easier. Homeowner Personal Loans can usually borrow a very large number compared to other property given as collateral. This is for loans, guarantees the payment of your home, usually more than one car, jewelry or other assets. In addition, always appreciate the value of your home, which means higher cost of debt in the future. Something you should know that lenders usually allow loans to less than the value of your home. Only the borrower can expect an exceptional credit of up to 125% of its relatives. This leads us to a credit record.
Credit history in their own economic concerns in the past. Created a fantastic, when to hold back all the charges – they are full and on time. Like a credit report to ensure the lender’s own ability to pay in full. Bad Credit reporting negative credit score, or do the opposite, which means lenders more hesitant flexible offer terms, higher interest rates and short loan terms.