In general there is a perception that for availing a homeowner loan, you always need to pledge your home as collateral. However, this is not the case. No doubt, the secured homeowner loans are comparatively popular among the lenders, unsecured homeowner loans can also be availed. The fact that you own a home in UK will invite varied loan offers to you. You can go for an unsecured loan that are best for smaller monetary needs. The repayment period is shorter and the APR is a bit higher.
Be it secured or unsecured, the loan amount for homeowner loans are calculated on the basis of home equity. In case of secured the lender may grant you 125% of your home value. In deciding the loan amount home equity is the most crucial factor. All other mortgages and loans running on or against the home are deducted. Other factors that the lender considers while deciding the loan amount and APR are your credit history. he valuates your repayment record of other loans and your DTI ratio as well. DTI is the debt to income ratio that evaluates your disposable income.
There is no restriction on the use of money you avail for homeowner loans. the loan amount can be used for debt consolidation, holidays, meeting educational and medical expenses, buying assets like car, boat or for going for a plastic surgery. The increased market competition among lenders and popularity of online media for applying for loans has made it possible to avail homeowner loans quickly than before.
For more information please visit at http://www.shakespearefinance.co.uk/This article is free for republishing
Source: http://www.articlealley.com/article_135003_19.html
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