Homeowner Loans

A home owner loan is a sum of money borrowed in addition to your mortgage. Just like a mortgage a homeowner loan is also secured on the property so you must keep up the repayments to avoid losing your home. Homeowner loans are also known as secured loans.

There are homeowner loans for many different purposes, including: debt consolidation, home improvements, cars, and weddings.

Any amount from £5,000 to £250,000 can be borrowed but you must be over 18, a UK resident and a homeowner.

Secured loans tend to have a lower rate of interest than unsecured loans however your home may be at risk if you do not keep up repayments on a loan secured on it. As a result, it is always worth considering a payment protection plan which will cover your loan repayments should you find yourself unable to pay for whatever reason.

The Home Loan Shop

Home Improvement Loans

A home improvement loan is a loan secured on your home, the purpose of which is to undertake improvements to your property.

With a home improvement loan you can borrow from £10,000 with relatively low monthly repayments compared with other types of loan. Home improvement loans secured on property can be repaid over a period of between 3 years and 25 years.

With a home improvement loan, it might be possible to afford the extension, new kitchen, bathroom, conservatory, landscaped garden, redecoration or other upgrade to your home, so you can add value to your property and save moving costs too.

As with any type of secured loan your home may be at risk if you do not keep up repayments on the loan. As a result, it is always worth considering a payment protection plan which will cover your loan repayments should you find yourself unable to pay for whatever reason.

The Home Loan Shop

Personal Loans

A personal loan and an unsecured loan are the same thing, but providers use the different names to describe the same product.

To apply for a personal loan you do not have to be a homeowner and the loan is not secured against any of your assets. Instead, a personal (or unsecured) loan provider will base their decision on granting you a personal loan by using your personal credit history. This is verified by a credit check to determine your credit rating.

However, a personal loan usually comes with a higher interest rate because the lender is taking a bigger risk. This risk factor also means that your finances have to be in fairly good order to qualify for the loan in the first place.

The Home Loan Shop

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Debt Consolidation

Debt consolidation is the term used when a large loan, called a consolidation loan, is taken out to pay off several smaller loans, credit cards or other credit commitments and merges them into one larger loan. This usually means that the borrowers payments are reduced over the short term, making a consolidation loan more manageable than several individual loans. However, the borrower will be making payments over a longer period of time.

If you have many credit commitments then a consolidation loan can make your day to day financial situation more comfortable and although a consolidation loan will probably be more expensive in the long run it will help you get back on track.

The Home Loan Shop

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Secured Loans

Secured loans, like mortgages, are loans secured on a property.

Secured loans are available for any purpose, including: debt consolidation, home improvements, cars, and weddings.

Secured loans tend to have a lower rate of interest than unsecured loans however your home may be at risk if you do not keep up repayments on a loan secured on it. As a result, it is always worth considering a payment protection plan which will cover your loan repayments should you find yourself unable to pay for whatever reason.

The Home Loan Shop

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Unsecured loans

An unsecured loan and a personal loan are the same thing, but providers use the different names to describe the same product.

To apply for an unsecured loan you do not have to be a home owner and the loan is not secured against any of your assets. Instead, an unsecured (or personal) loan provider will base their decision on granting you an unsecured loan by using your personal credit history. This is verified by a credit check to determine your credit rating.

However, an unsecured loan usually comes with a higher interest rate because the lender is taking a bigger risk. This risk factor also means that your finances have to be in fairly good order to qualify for the loan in the first place.

The Home Loan Shop

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I'm planning on using this space to answer some common questions about personal finance and credit.

I will be posting daily (Monday - Friday) and I hope people will find this a useful resource.

Paul Adkins

The Home Loan Shop

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