Homeowner Loans

As an excellent way to fund almost anything, homeowner loans are only available to homeowners. Homeowner loans are also known as  secured loans because they are secured on the equity of the property. Unlike before the recession, homeowners cannot qualify for a secured homeowner loan if they are void of equity on the property.  Equity being the difference between the value of the property and the balance left on the mortgage.

As an example, if a property is worth £200,000 and the mortgage is £190,000 the equity is in fact £10,000. With the maximum equity at 70% for the self employed and 80% for employed, these numbers would mean that the borrower is not eligible for a homeowner loan until his property increases in value. With interest rates starting at present at about 9% APR, homeowner loans are a good way for a homeowner to borrow. With this type of loan, it is only a matter of stating the plan for the money on the application form and no other proof will be asked for. The most common reasons for obtaining a homeowner loan is to consolidate credit cards and other personal loans. With interest rate for secured homeowner loans much lower than credit cards, etc. massive savings are possible.