About Homeowner Loan
Homeowner loan is loan borrowed money against your property. If there are problems faced during the term of the loan, your home can be possessed and sold to pay up your debts.
It depends on the agreed number of years. It can take p to 1-35years for repayments to be complete. A legal charge is taken on the property if not paid back on time. If you are not a homeowner, you should consider other options like, unsecured loans, overdrafts, credit card etc.
Home loans should be the last resort, because of the risk involved, when taken out loans against your property. It should not be used for unnecessary things like buying of new car or holidays, it should be spent wisely because when faced with financial difficulties you might lose your home.
Frequently Asked Question
How Much Can Be Borrowed?
It ranges from £3000-£100,000. The amount of money depends on the value of your property, depending on your equity. It also depends on your income and outgoings. In all, you would have to show proof on the repayment will be made before its issued out.
Number Of Years For Repayment
It depends on the number of years that suits you, depending if you want your repayment to be run over your mortgage or before your retirement.
- When To Consider Homeowner Loan
- You must be a homeowner
- There must be mortgage on your property
- You must have equity on your property
- Depending on your credit history, when going for a homeowner loan
- Proof that you can afford the repayment
What Is The Interest Rate?
Interest rate can depend on the number of years chosen to make the repayment. If the repayment takes longer years, it definitely increases the rate interest. The shorter period it takes to repay, the lower the interest rate. It also depends on your income and outgoings, depending on your capacity, which might even also lead to increase on the number of years it takes to repay. It also depends on your credit history. Someone with a poor credit history might get higher interest compared to someone with a clean credit history. That is why we at penny solvers are here to help and advice you on the pros and cons. The process of the loan might take 3-6 weeks.
- When financial difficulties are faced, and repayment are not made as agreed, your home might be at risk.
- Interest can be increased at any time.
- Repayment of loan earlier than stipulated date of finishing can bring penalty.
- Our loan comparison service lets you know the available package and compare loans up to £100,000.
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