Homeowner Loans
- No Credit History Needed
- Easy Online Process
- Flexible Loan Tenures
- Floating Interest Rates
- No Processing Fees
I want to borrow
Do you want to decorate your home with more elegancy? Are you considering consolidating significant debts? Are you dreaming of purchasing another property?
If your answers are in yes, then homeowner loans are the perfect solution for you. You have the most significant advantage of applying for these loans is you can borrow considerable money, which will be on better interest rates.
You get this benefit because you are using your home as collateral against the borrowed sum. Lenders feel safe in funding your needs because you have pledged the security.
Figuralloans, as one of the trusted homeowner loans direct lenders, aims at offering flexible borrowing limits and repayment plans tailored to fit your budget. Best homeowner loans are ideal funding sources despite the risk of losing your home if you default.
We still suggest you consider other options as well before finalising a deal. Still, you will find our loans the most affordable than any other in the UK marketplace.
Homeowner loans, also referred to as secured homeowner loans, are another type of lending where borrowers use their property as loan security. It can be in the form of your home or apartment or a flat.
Placing the loan collateral as the security is vital to get the guaranteed loan approval. Lenders can be flexible in their norms. Consequently, people with bad credit or very bad credit scores can fetch the desired amount without paying higher interest rates.
To get the loan, you need to be a homeowner or a mortgage holder with having sufficient equity in the given property. Therefore, these loans are also called secured loans, making things easier for borrowers, especially when getting higher amounts but not at higher rates.
You should apply for homeowner loans if you have the following requirements:-
A homeowner loan repayment example can help you understand.
If you take out a loan amount of £20,000 with a repayment term stretched up to 10 years at 6% APR, the monthly payments would be £ 277. Thus, the total amount you will repay, calculated till the end of the term, will be £ 33,240.
The primary eligibility requirement for homeowner loans in the UK is that you should own a home. Still, there are some other conditions apply that you should also fulfil. These are the general ones, not mandatory.
| Eligibility factor | Importance |
| Homeownership | A home is a secured loan requirement to be used as collateral |
| Earning stream | Provide steady income proof to enhance loan affordability |
| Credit history | Approval chances improve with higher credit scores |
| Age | Your minimum age should be 18 years, and your maximum age should be 70 years |
| Property ownership | Your property will act as a security or asset |
Better Earning Source
Your loan affordability will pave the way for smooth loan approval. And your steady income determines the loan affordability. As long as you earn a good income, you have a better chance of getting 100% loan acceptance. Sometimes, you need to provide salary statements carrying your income and outgoing expenses.
A Good Credit Rating
Any lender likes the borrowers who have maintained their credit scores on the good side. If your credit score does not have any dent and all your payments are on time, you can easily qualify for homeowner loans. However, loan approval is also there for those with poor credit scores, but the lenders’ preference is always a good credit score.
Age Requirement
Many lenders have set their own age criteria to get these secured loans. In most times, we accept the loan applications of those individuals between the ages of 18-21 years. The maximum age limit can extend up to 70 years.
Your Property
It is a general requirement because you should have to get a loan. You need to keep your home as the loan security, and it is enough to attract guaranteed loan approval. If you cannot keep up the monthly repayments of homeowner loans, the lender retains the right to repossess your house to cover the funds' loss.
You can apply for secured homeowner loans for multiple reasons. However, you apply only when you have the requirement of a large sum of money. You can approach a direct lender to have a homeowner loan for the following purposes:-
Home Improvement: If you wish to have or there is mandatory home improvement, you can apply for these loans. Once getting the funds, you can spend them on necessary repairs, extensions and embellishment of the house.
Second Property Purchase: You can apply for these loans to increase your deposit to buy another property. It means you do not have to disturb your savings, and property can become yours.
Debt Consolidation: Do you have many debts to clear? Is paying each interest rate and repayment becoming difficult for you? Why you are worrying so much when you have the option of secured loans. Apply for these homeowner loans, merge all debts into a single payment, and get a lower interest rate.
Paying another Loan: If you have borrowed a loan through government funded schemes, you can use our loans to make its payment on time. It is like another debt that you are clearing with secured loans.
To Boost Business Capital: Running a business is not a smooth journey to walk easily. You must have some financial obstacles to go part with. Homeowner loans help you to generate significant funding that you can use for the cash injection. With having funds, you can plan out business expansion, funding a new project or purchasing equipment.
For Personal Usages: We do not ask for your loan purposes, and thus, we allow you to use homeowner loans to fund your personal occasions like weddings. Moreover, you can also use funds to pay the university while pursuing an expensive academic course.
Whatever your purpose of applying for homeowner loans, we offer only affordable loans that match your financial capacity.
In general terms, secured loans are a much better choice for those with poor credit ratings than unsecured loans. You have secured the loan with collateral, making you an eligible borrower to avail of homeowner or secured loans for bad credit people.
The primary condition is that you should be a homeowner or a mortgage holder. Having a bad credit score is no more a hurdle in your loan chances. In fact, we have made specialised lending deals for you, including competitive APRs and flexible repayment periods.
Unlike other direct lenders in the UK, we accept your loan application despite having multiple bad credit issues like:-
We are open to accepting loan applications on homeowner loans for poor credit. Still, you do not need to worry about the interest rates. Since you have secured the amount through your home, you get lower interest rates and floating repayment terms. Choose your own rate and loan term by using homeowner loans calculator, and improve your credit score for more lending opportunities.
Almost every loan has a comparison with any standard loan option. Borrowers should have explicit knowledge of it before deciding on a particular loan offer.
On similar notes, Homeowner loans from direct lenders are often compared with non-homeowner loans.
Homeowner Personal Loans
As described above, homeowner loans are the secured loans where the borrowers get the loan approval after they pledge their home as the loan collateral. The interest rates are lower, but the chances of obtaining a large amount are quite there.
The standard loan features are:-
Non-Homeowner Loans
As opposite to homeowner loans, non-homeowner loans are more like unsecured loans. Here, the primary borrower may not be a homeowner, and you can apply even if you are living on rent. In fact, these loans are sometimes called tenant loans. The interest rates may be somewhat higher, but these loans are helpful during a financial emergency.
While applying for non-homeowner loans, you get the following features:-
Like unsecured loans, secured loans do have some advantages and disadvantages for the borrowers. You need to be familiar with these as it will help you get a better deal with better lending norms.
You may approach a broker who is connected with a wider panel of lenders. However, you will have to meet the homeowner loan broker fees. Paying this will add more to your financial burden. Therefore, you need a responsible direct lender like us.
We not only provide loans but also guide our borrowers without charging anything. Closely look at homeowner loans risks and benefits, and they opt for our best deals.
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Advantages |
Disadvantages |
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You always have a better chance of borrowing a significant amount. The maximum amount you can borrow is up to £300,000. |
You have a larger risk of losing the pledged collateral i.e. your home. This happens when you do not repay the loan on time. |
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Since the loan term is more extended, you can have affordable monthly instalments compared to the unsecured loan. |
Loans with a longer duration often involve an overall higher interest rate. The longer the loan term, the higher the interest rate you need to pay. |
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Homeowner loans are the perfect lending choice for those with poor or no credit history. With collateral is already placed, you can get loan approval on lower interest rates. |
Homeowner loans may be subject to early repayment fees, which happen with most long-term loans. You want to repay early to reduce the interest, but it may cost you more. |
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Such long term loans are extremely helpful in improving credit scores. You have affordable monthly instalments, and making each of them on time enhances your credit scores. |
Getting the right helping hand of a responsible lender is quite crucial for homeowner loans. Therefore, you need to work hard to get the correct loan deal and avoid any trap. |
Non-homeowner guarantor loans from direct lenders are short-term loans, but they prove very useful for those who do not have a home and take their loan guarantee. These people are living on rent, or they are the tenants. They do not have their own home to be placed as loan collateral.
In particular, the people with not so decent credit history can show the person as their guarantor who is a tenant. Traditional lenders often prefer homeowners as the loan guarantor, as they feel secure in doing so. On the other hand, direct lenders like us can accept tenants as the guarantor. We are already committed to non-homeowner guarantor loans on same day payout.
These are also called tenant guarantor loans and allow borrowers to:-
At Figuralloans, you have three crucial advantages on availing of homeowner loans. These are:-
To avail of these benefits, you need to come online to apply for the loans. We have the simplest of the loan application form that requires only a few details to mention. Your data is safe with us, and we do not share it with any 'third party.
Once you submit the form, we quickly examine the details and share a free loan quote with you. You are free to discuss each point of the loan quote with us. After everything is fine, we release the funds to your bank account.
Our friendly and professional team of loan experts will help you at their level best. They let you get the lowest possible interest rates without delaying the proceedings.
Get pre-approved to compare multiple loan proposals from different lenders at the same time. This can help you get low-interest homeowner loans.
You should not miss out on the best deal on homeowner loans. Apply now.
What are the main differences between fixed and variable homeowner loans in the UK?
Here are the main differences between fixed and variable interest rate homeowner loans to make a rational borrowing decision:
| Fixed homeowner loans? | Variable homeowner loans |
| These loans remain at the same interest rate for a usual set period of 2 to 10 years. | The rate of interest here fluctuates, depending on the lender's standard variable rate (SVR) or tracker rate |
| Due to a fixed interest rate, the monthly instalments remain the same, making the budget planning easier. | Monthly instalments can increase or decrease as per the change in the interest rate. |
| A fixed interest rate has a lower risk, as there is no unpredictable rise in monthly and annual costs. | It is financially riskier due to the volatile nature of the interest rate. |
Why do some homeowner loans have early repayment charges during fixed-rate periods?
The following reasons make some lenders levy ERC (early repayment charge)
What are the common uses for secured homeowner loans beyond home improvements and debt consolidation?
A secured homeowner loan can be used for versatile large purposes, such as:
What are the typical interest rates and fees?
The interest rate varies based on the applicant's credit score. Read the table below. However, never forget that representative APRs and fee amounts vary according to the financial ability of the borrowers.
| Credit rating | APR |
| Excellent | 4% to 6.5% |
| Good | 5.4% to 9.5% |
| Fair | 8.4% to 13.5% |
| Bad/Adverse | 14.6% to 29.9% |
Fee type and relevant amount
| Fee type | Amount |
| Arrangement fee | £290 to £990 |
| Legal fee | £100 to £340+ |
| Valuation fee | £100 to £450 |
| Early repayment fee | 1% to 6% of the remaining loan balance |
| Exit fee | £50 to £150 |
Will applying affect my credit score?
If you conduct a hard credit search, it does leave a search footprint on your credit report. However, that helps a lender know your finances in detail and offer a personalised deal that is affordable. However, you can also consider applying for pre-approval that only requires you to go through a soft credit check.
What documents are needed?
A list of basic financial and personal documents is required, which may include:
How long does it take to get a homeowner loan?
It typically takes between 24 and 48 hours to process a fast homeowner loan. For an unsecured loan, the process takes one day, while for a secured one, a maximum of two days is required. Your strong repayment capacity effortlessly reduces the time for the application process and fund disbursement. You can get same day loan as well.
How much can I borrow?
The typical borrowing limit ranges from £1,000 to £50,000 depending maximum LTV (loan-to-value) ratio and the extent of equity release. If you choose to provide collateral, the borrowing limit increases significantly. Additionally, your financial stability, including income regularity and recent payment behaviour, is another decisive factor. To borrow a desired amount, it is better to work on your credit purchase power.
Are homeowner loans better than remortgaging?
The ultimate decision should be based on your financial situation, goals and property condition. Review pointers related to re-mortgage vs homeowner loan to understand which one is a better option for you. Interest rates can be adjusted in the case of remortgaging.