Homeowner Loan - Take Advantage of your Equity Gains

By: David Lynes

Over recent years the value of residential property in the UK has rocketed, and as a result of this many homeowners have seen the equity levels in their homes soar. Homeowners with high levels of equity in their homes can enjoy increased financial leverage, and many homeowners have taken advantage of this be enjoying affordable borrowing in the form of a homeowner loan, which is secured against the equity in the property.

With so many homeowners enjoying such high levels of equity gains a homeowner loan is one of the most sensible solutions when it comes to raising finance. This is because homeowner loans, which are secured loans that are secured against the equity in the home, offer far greater borrowing power than unsecured loans, and the amount that you can borrow depends, amongst other things, on the level of equity you have in your home.

This means that potentially the higher the equity levels in your home the more you can borrow in the form of a homeowner loan, which will enable you to raise money for just about any purpose, from a new car or home improvements to debt consolidation or a luxury holiday. A homeowner loan is a great way to unlock the high levels of equity tied up in your home without actually having to sell up and move home first, and if you are using the money for something such as home improvements it is quite possible that you can recoup part or all of the money through increasing the value of your home even further.

Another great thing about homeowner loans is that you can spread the loan over a far longer term than with unsecured loans, so therefore even if you have high levels of equity in your home and wish to borrow a large sum of money against this equity you can still enjoy affordable monthly repayments because you can spread the loan over a longer period of time. Another benefit is that because these loans are secured in nature they are less of a risk to lenders, and therefore many lenders will even consider those with poor credit for a loan that is secured against the equity in a home.

If you are interested in making the most of your equity gains and taking out a homeowner loan you first need to establish the level of equity that you have in your home. You can do this by getting a valuation on your home and then deducting the amount of any outstanding mortgage or existing secured loan from the property value. This will leave you with your available equity, and you can use this figure when looking for a suitable homeowner loan.

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