Secured Homeowner Loans - Go, Get Them

By: Gracy Bonsu

Are you a homeowner? Are you willing to offer your home as a security to the lender? If yes, you can expect a lot of relaxations from the lenders. So, go and get loan against your home.

Being a homeowner, you are amongst the privileged borrowers. If you have good credit history, you can contact some of the prime lenders in the UK loan market. High street lenders are prime lenders and they can provide you loans at very competitive rates. Besides, you can also check out with building societies, online lenders, financial institutions, etc. There is a huge sub-prime market in the UK that caters to Britons who have a bad credit history. So, it is desirable that you find out your credit score first and then approach suitable lenders.

Secured homeowner loans can be repaid in EMIs (equated monthly instalments). Each EMI is so calculated that it includes a part of interest and a part of principal amount borrowed. Homeowner loans provide you flexibility in repayment terms. You can pay the EMIs at fixed rate of interest, variable rate of interest and also according to capped rate of interest.

In case of variable rate, the interest varies with the fluctuations in base rate of interest as determined by the Bank of England from time to time. From time to time, the monetary policy committee of the BoE fixes the base rate of interest. Capped rate of interest means that your applicable rate cannot go beyond the ceiling or cap assured to you. In case of fixed rate, you keep on paying at fixed rate up to a certain period of time and, thereafter, the rate becomes variable. Lenders provide you these repayment options only in case of homeowner loans. If you can comfortably repay your instalments, you should opt for secured homeowner loans. These loans involve a very low cost.

Home Loans
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