Homeowner Loans

A homeowner loan is a secured loan that lets you borrow a large amount of money, with your property acting as security. The property could be almost any type, including a house, flat or bungalow.

You’ll repay the loan in monthly instalments, with interest, over a period of 3 to 20 years. Since your home is tied to the loan, it’s important to borrow only what is affordable to you – now and in the future – so you can stay on top of your repayments.

Homeowner loans are designed for homeowners with a mortgage who are looking to borrow more than what an unsecured loan could offer. A secured homeowner loan could be a suitable option if you:

• Own part or all of your home
• Have had difficulty getting approved for an unsecured personal loan
• Are a homeowner with less-than-perfect credit
• Need to consolidate existing debts
• Want an alternative to remortgaging
• Need a larger sum for a big expense, like home renovations
• Want to spread out the cost of your loan over a longer period

Not sure if a homeowner loan is the right option for you? Feel free to get in touch with our team and we’ll help you explore your options.

Compared to other types of loans, secured homeowner loans have a few perks:

• Higher loan amounts

You could potentially borrow more with homeowner loans. Offering your home as collateral reduces the risk for lenders. This may allow you to access a larger loan amount than an unsecured option might offer.

• Apply with bad credit

Are you a homeowner who’s struggling to get accepted for a personal loan? You may be eligible for a homeowner loan, as applications are based on a range of factors other than just your credit score.

• Longer repayment period

With a secured homeowner loan, you can spread your repayments over a longer period. This can help lower your monthly instalments, making the loan feel more manageable.

To make an informed decision, here’s what you should bear in mind:

• Property at risk

If you miss payments, your home could be at risk of repossession. If you’re facing challenges, it’s important to speak to your lender as soon as possible – there may be ways to work together to find a solution.

• Higher overall interest

Opting for a longer repayment period may result in paying more in interest over time. However, depending on your situation, this could still be the option that works best for you.

• Early repayment fees

Paying off your homeowner loan early could mean facing early repayment fees. If you’re looking to save money by paying the loan off early, it’s worth checking the fees before going ahead, so you’re fully prepared.

To qualify for a secured homeowner loan with Evolution Money, you need to be:

• A homeowner
• Aged 21-70
• Living in the UK
• Able to afford the repayments comfortably from your regular income for the lifetime of the loan

To find out if you’re eligible, start a quote with us online, with no impact on your credit score. Or if you prefer, just get in touch – we’d be happy to talk it through with you.

When it comes to securing funding, choosing a lender you can trust is key. Here’s why Evolution Money could be the right fit for you:

• We take a holistic view of your finances, not just your credit history. If you meet our eligibility criteria, we’ll work together to find the best solution for your needs.
• We believe in being upfront with you. You’ll always receive a clear breakdown of costs and terms, so there are no surprises along the way.
• We’re proud of our reputation for trust and reliability, with hundreds of customers rating us as ‘exceptional’ on Feefo. Plus, we’ve earned Feefo Platinum Service Awards multiple times over the years.
• We’re fully regulated by the Financial Conduct Authority (FCA) and are members of the Finance and Leasing Association (FLA).

A homeowner loan is a loan that’s secured against your home that you can use for almost anything, whereas a mortgage is a loan you take out specifically to buy a home.

To qualify for a homeowner loan, you need to own a property and have equity in it. With a mortgage, on the other hand, you don’t need to own a property already – you’re using the loan to purchase one.

Another key difference to bear in mind is that the interest rates for homeowner loans are usually higher than those for mortgages.

You can use a homeowner loan for virtually any purpose. As you could potentially borrow a large amount of money with a secured loan, many people use their loan for big expenses (cars, weddings, holidays, etc.) or to consolidate existing debt. Common ways to use a homeowner loan include:

• Home improvements
• Debt consolidation
• Holidays
• Vehicle purchases and upgrades

H3: How much could I borrow with a homeowner loan?

At Evolution Money, we offer secured homeowner loans from £5,000 to £100,000. The actual amount you could potentially borrow will depend on your situation, including your affordability, credit history and the equity you have in your home.

Yes, you can apply for homeowner loans with bad credit. As you are using your home for collateral, you are considered less of a risk to lenders. So, may still be eligible, even if you’ve had problems dealing with debt in the past.

If you want to sell the property your homeowner loan is secured against, you’ll need to pay off the loan in full. This is because the loan was approved based on your current home and personal situation, which may change if you move.

Please bear in mind that if you pay off the loan early, there could be a fee involved. Let us know if you have any questions, and we’ll be happy to help.

Yes, you can! However, there’s a charge for early repayment, the details of which will be in your loan agreement. Just keep in mind that if you repay your homeowner loan early, the total amount you’ll repay could be higher than what you initially borrowed.

When you apply for a secured homeowner loan, we’ll ask for the same documents you’d need when applying for a mortgage, including but not limited to:

• Proof of identification
• Proof of income
• Bank statements
• Proof of address

If we need anything else during the application process, we’ll let you know. We’re here to make things as easy as possible, every step of the way.