A secured loan may be a suitable option to borrow money against your property.
Secured lending would usually relate to a mortgage. However, there are other situations where your home acts as security – like a secured homeowner loan.
With a secured homeowner loan, your property acts as security on the loan.
These loans are for homeowners or mortgage payers who may want to borrow more money than would be possible with an unsecured loan. An alternative to a secured loan is re-mortgaging your house to release equity.
If you are considering a secured homeowner loan or using your property for finance, check the loan repayments are affordable.
Bear in mind interest rates can rise and fall with the market. So when considering your options for borrowing against your home, check:
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.