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is only homeowners who can make application for homeowner loans
and one is still a homeowner when the property has a mortgage
secured on it.
Those
who only rent their properties either from a local council,
a housing association or privately, cannot apply for homeowner
loans as they are not in fact homeowners.
The best
and lowest rates for homeowner loans are those that are secured
and what they are secured on is the residential property itself.
There
are also unsecured loans for which both tenants and homeowners
can apply although those who do not own their homes will find
it very difficult, if not impossible, to obtain finance in
any shape or form at present, although in truth it was never
easy except through high interest non status lenders such
as Welcome Finance.
With Welcome
out of business, non homeowners have very little choice when
it comes to obtaining a loan forcing some desperate poor unfortunates
into the unscrupulous clutches of illegal money lenders which
is a sign of these hard times.
Homeowners
do find it easier to obtain an unsecured loan than do tenants,
but even for them, unsecured loans can be quite difficult
to be granted as these loans are, as the name states, unsecured
which means that the loan lender is taking a bit of a risk.
When a
loan is a completely unsecured personal loan, the lender cannot
have any real certainty that the borrower will fully repay
the loan and as there is no security of any kind he has really
no recourse of any kind to fully ensure that the loan will
be repaid.
If the
borrower does not make all the repayments the lender can do
little apart from registering a default or registering a CCJ
which although it will reflect adversely on the borrower's
payment profile it will in no way go towards the lender getting
the money back.
Therefore
for homeowners requiring a loan, by far the best way is by
applying for a homeowner loan on a secured basis.
As the
loan is secured against the asset of the residential property
no one in their right mind would apply for these homeowner
loans unless they were totally certain in their own minds
that they can easily afford the repayments.
This gives
homeowner loan lenders the confidence to grant homeowner loans
at low rates of interest starting at about 9% at present.
Homeowner
loans, when they are secured, are a good low interest way
for a person who owns his home to borrow any sum from £5000
to up to £500,000, providing that there is sufficient
equity, meaning that these home loans should be the first
choice of loan product.
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