Taking out a loan against property has been a popular way to borrow for home improvements, debt consolidation and larger key purchases for decades.
This may well be due to loan products in this sector offering more flexibility in terms of:
Larger loan amounts - ranging from £5,000 to £200,000.
Much wider choice of repayment periods - borrow over 36 months up to 240 months.
These key areas can really help both with obtaining the amount you need and affordability - by enabling UK homeowners & mortgage payers to match property loan repayments to their budget.
That is not all - many of our property based lenders also approve competitive loans for applicants with a low credit score. Have you been offered too small an amount, at too high a rate by a lender or have you been declined for a personal loan by a bank or building society?....
…..If so, you are not alone! There are many people across the UK who are being haunted by past credit problems due to going through some difficult times. This could be an opportunity to get the loan you need and build a new positive payment profile, which in turn is likely to help to repair your credit rating.
Get the facts and figures - to discover how much you could borrow on your property call our experienced UK based property loan team for free on 0800 0159 295 or dial 0330 0536001 (mobile friendly) and talk us about getting your any purpose affordable loan.
Alternatively please complete our short web form (don`t worry no credit search will be carried out with this form) and get the ball rolling.
If you`re self-employed you may find it difficult to give assurances about your income over a long period of time which may impact on some lenders accepting you, but perhaps not all…. Whatever it is that`s holding you back you might just break through the barrier by securing the loan against your home or a property you rent out.
But isn`t a secured property loan a complicated and risky way of getting a loan? At My Sort of Loan we process loans on property every day and our qualified advisers are on hand not to just simplify the process, but to advise you on getting the right type of loan on your property.
All forms of borrowing inevitably come with some risks, but you should always think carefully before securing other debts against your home and be aware that your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it .
Please note: We also arrange unsecured UK homeowner personal loans from £1,000 to £15,000, please tell our team if that is your preference.
Loan amounts from £5000 to £200,000 – Depending on how much equity you own, affordability and other key factors you could get a loan on your property for up to £200,000 for any legal purpose. Surprisingly not all of the property loan plans need you to have enough equity to cover the amount borrowed. Speak to our team about this option.
Get the loan you need even if you`ve been refused a loan elsewhere - By offering collateral to the lender you can stand a better chance of getting the loan you need, instead of constantly applying to multiple unsecured lenders.
Get a better rate on your borrowing – You might get a better rate by securing a loan against your property than by taking an unsecured loan, as the lender is not taking as much risk. This depends upon which lenders are available for your scenario.
Even an unsecured loan can become a secured debt - if you get behind on an unsecured loan and default on your credit agreement, the lender may take court proceedings to recover the debt. If they are successful they may get a charging order against your property and you can incur a county court judgment (CCJ).
So how do you secure a loan against property? When you bought your home (or a buy to let property) your name was added to land registry deeds to show you as the legal owner. If you used a mortgage to buy the property your mortgage company will have recorded a charge on your house / flat as their security for providing your mortgage. When you take out a loan on your property the loan company`s name is added to the deeds / land registry after yours and the first mortgage company, making their loan a second charge. This is why these secured loans are also known as second mortgages.
Does this mean that I don`t own my house anymore? No - as there is no transfer of ownership when you take a loan against property, it works in exactly the same way as your mortgage where the finance company lends you the money on the grounds that if you don`t repay the loan they can ultimately and as a last resort sell your house to get their money back. The only difference is that the first lender gets their money first and the second lender gets the amount due to them, the balance (if any) of monies obtained is then passed to you as the homeowner.
If that sounds like you`d be taking a risk you`d be right, by taking on some of the risk yourself the lender might feel more secure in lending you the amount of money that others have declined to, so they too are taking a risk. So it`s worth considering how much you need to borrow money before you secure any loan on your property. Why not talk to our trained staff? - and we will discuss your needs before giving you our advice and recommendations.
If you`ve had credit problems in the past or even if you have a current set back that has left you unable to stay on top on your last couple of mortgage repayments My Sort of Loan may still be able to help you to get a loan on your property and clear any mortgage arrears. With a loan against property we can help you settle your mortgage arrears, make the improvements to your home, or perhaps consolidate loans and credit cards that you`re struggling to repay. When it goes well you may be able to achieve all that you wanted to do, despite perhaps being refused a loan elsewhere.
One of the things terms that you might have heard when you`ve talked to people about loans on property is equity. So what`s that all about? Isn`t that the actor`s union? What`s that got to do with loans against property? Well simply put an equity loan on your property is a secured loan. With a secured loan you use the part of the house that you own to secure the loan against. So if your house is worth £200,000 and your mortgage is £75,000 the equity in your property would be £125,000.
Depending on a number of factors you might be able to secure a loan on a percentage of the equity in your home. The amount of equity you can utilise depends on the maximum loan to value a secured loan lender will go to on your property. The loan to value limit is calculated on a lot of variables but a few key ones are the condition of the property, it`s value and your personal credit performance over the last few years.
Do you own a property that you let out? Perhaps you`re a landlord and have a couple of properties that you`ve bought as an investment or you`ve inherited a property that is more than paying for itself. At My Sort of Loan we can arrange a loan against your buy to let instead of your residential home. The income requirements are more leaned towards rental revenue on many of these products - which can be a help for some borrowers. Speak to our UK loan team to discuss our lenders buy to let products and if this might be the best way to fund the loan you are looking for.
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