homeowner Loans

Homeowner Loan: Advantage or Catastrophe?

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Short-term Unsecured Loans

Short-term unsecured loans are a popular kind of loan in the UK market. For unsecured loans, a person does not have to pledge any asset (automobile, house, personal valuable), as collateral to borrow a loan from different lenders, the asset on which the loan is ever granted is the borrower’s creditworthiness and the ability of the repayment the loan amount. There are many types of unsecured loans in the UK market that helps an individual to acquire loans very swiftly and people with bad credit ratings can alsoopt and apply for such loans.

Duration to pay Unsecured Loans

Unsecured loans are short-term loans and the repayment of the loans depends upon lender to lender, also borrower can choose the type of loan depending on their requirement and the loan amount and interest rates offered by the lenders with the repayment cycle. Usually, the repayment cycle is from one day to 12 months depending upon the loan amount and interest rate, but in case of Homeowner loans, it can reach up to 35 years as the amount for such loans is usually higher than every other type of unsecured loan.

Unsecured Homeowner Loan

As the name suggests Unsecured Homeowner loans, are the loans that are granted to homeowners or any person who has a property in their name and are not tenants. This is because the credit scores of the people owning a house are better than the scores or credit rating of the tenants. Unsecured Homeowner loans have been a burgeoning option in the UK market as it is a type of loan in which a person has not to keep any collateral for acquiring the loan from the lenders. Also for Homeowner loans, the value of the property is always evaluated not to keep it as a mortgage but to sum up the limits of the loan one can receive and also it determines one’s knack for repayment of the loan. Homeowner loans range from 1000 pounds to 2.5 million pounds with the repayment duration depending upon the loan amount and interest.

The FCA has been working on and has also set up regulatory actions to stand against clone firms, anyone who has been approached from any clone firm can also register complains or can contact their Consumer Helpline on 0800 111 6768.

Different ways to use Unsecured Homeowner Loans

  • Homeowner loans are beneficial loans as they can be used as a debt consolidation to repay previous loan amounts, as in this case,a borrower does not keep any mortgage as collateral for the loan.
  • It can be used for home renovation and improvements like remodelling different parts of the house or to buy furniture or other essentials for the house.
  • Homeowner loans can also be used for personal uses as well; people opting for homeowner loans can use the money from the loan amount in different ways according to their suitability and needs.

Who can opt for unsecured Homeowner Loan?

Any person who is above 18 years of age and who owns a house in his name can pitch for Homeowner loans. In addition to that, the borrower must be a citizen of the UK.

Considerable Points Before Availing Homeowner Loans

  • Compare the deals from different lenders depending on the suitability and convenience.
  • Always opt for loans having fixed APR.
  • Repayments plans and interest.
  • Opting for a registered broker is helpful because of the bogus brokers who are defrauding people in the loan market, as it will protect you in the long run and will also guard your rights.

Pros and Cons of Homeowner Loans

Pros

  • No collateral or mortgage has to be kept to acquire Unsecured Homeowner Loan.
  • There is no risk in opting for Homeowner loan.
  • People with bad credit ratings can also apply.
  • Quick and easy formalities of the application process to apply for the loan.
  • Flexible repayment cycle of the loan is available with a few lenders.

Cons

  • High-interest rates as compared tosecured loans.
  • Non-repayment affects credit rating and credit scores.

Conclusion

By considering every aspect of Unsecured Homeowner Loans, it can be said that homeowner loans are a helpful and convenient way for opting a loan. Because if a person opts for such type of loans does not demand any mortgage as collateral for the loan and can easily apply for the loan. Rather if he uses conventional ways like the banks he would have to keep some mortgage for a loan. Any person who owns a house can easily apply for Homeowner loans and can also use it in different ways.

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