A homeowner loan, which is also known as a secured loan or a second charge mortgage, is a loan that is secured against your property. Homeowner loans can be useful if you want to borrow a large sum of money or have a less than perfect credit history. They are typically used to fund home improvements, consolidate existing debts or to fund large purchases.
As your property is provided as security against the loan, lenders can often see this as a smaller risk and may charge lower rates of interest. However, your home could be at risk if you are unable to repay the loan.
If you're a homeowner with a mortgage, then you will be able to apply for a homeowner loan via the Lendle.co.uk website.
Yes, you can repay your loan early, however, you should be aware that some lenders we work with have an early settlement charge which is approximately 2 months' interest on the outstanding balance of the loan.
Lenders may also charge an "administration" or "discharge" fee when loan is paid off.
A homeowner loan can be used for almost any legitimate purpose.
Common purposes for people taking out homeowner loans include Debt Consolidation, Home Improvements, Vehicle Purchases and to pay for a Wedding.
Lenders offer repayment periods upto 30 years giving you the flexibility you need to repay your loan.
The repayment period of your loan will also be written into your mortgage illustration document.
A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan.
Having a fixed rate allows you to accurately predict the amount you will be required to repay each and every month for the duration of your loan. Fixed interest rate products are typically available from 2 - 5 years.
A Variable Rate is an interest rate that can increase or decrease based on the lenders Standard Variable Rate in the future. Selecting a variable rate can often be cheaper than a fixed rate depending on how the rate fluctuates during the term of your loan.
Some lenders align their variable rates to other rates such as the Bank of England Base Rate. Movements in these rates could affect the rate charged on your loan.
Loan To Value, which is commonly referred to as LTV, is a term that is often expressed as a percentage.
For example, if you have an outstanding mortgage balance of £80,000, an outstanding homeowner loan balance of £10,000 and your property value is £100,000 then your Loan to Value (LTV) would be 90%.