Homeowner Loans- for your Long Term Needs

By: Rodney Elvis

If your monetary requirement is big and you want a long term loan then you have to provide some valuable security to the lender. Your home being one of your most valuable assets comes into the picture and stands as a security. These types of loans are known as homeowner loans. These loans have some special features and characteristics.

In case of homeowner loans, you can borrow up to ?250,000. The loan amount also depends on the equity in your home. For this purpose, a loan-to-value (LTV) ratio is calculated. Normally, lenders allow LTV ratio of 80 per cent. But, some lenders can even lend 125 per cent of the value of your home. The minimum amount of loan hovers around ?5000. The exact loan amount depends on many factors like your personal income, your credit history and the tenure of the loan. These factors affect the terms and conditions of the loan agreement in a big way.

If you have bad credit history or you have earlier defaulted in repayments then you may not get a big loan amount. The repayment period may also be curtailed. In other words, the lender will impose strict conditions on you. The lender can either reduce the loan amount against the homeowner loans or increase the rate of interest. On the contrary, higher equity and perfect credit record brings you many benefits.

Many housing societies, high street banks and non-prime lenders offer you homeowner loans. You can either personally visit their offices or you can choose to apply online. For online application the process is very simple. You are required to fill-in the application form and submit it online. The lender will contact you after scrutinising your financial requirements and individual details. You can apply with several lenders and then compare the loan offers that they make to you. Thus, you can get a better loan deal.

Home Loans
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