A home equity loan allows you to borrow money using your homes equity as collateral. So what does this mean? Collateral is
a security or guarantee pledged for the repayment of a loan if one cannot procure enough funds to repay.
Equity is the difference between how much your house is worth and how much you still have to pay on your mortgage.
For example say you buy a house for £150,000. You have saved up and decided to put a deposit of £25,000 against the property meaning you borrow £125,000 as a mortgage.
At this point you have £25,000 equity on the property.
Lets say 3 years down the line you have paid £15,000 with your monthly mortgage payments so now you owe £110,000. Lets say you have had your house valued after these 3 years and find it is now worth £190,000.
This means your equity is £80,000 (£190,000 current house value - £110,000 how much you still owe = £80,000 Equity)
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Providing Home Equity and Refinancing Loans |
This means you can release any amount of the £80,000 equity on your home and use it for whatever you need it for: Debt consolidation, home improvements, new car, a wedding - any purpose
It really is a simple process - fill in our application form, it takes less than 2 minutes to fill in, and we fill contact you at the time you request. Our quote service is completely free and you are under no obligation to take the process further. If you decide you are happy with the information our trained advisors give you, we can have a loan agreed in principle within 24 hours.
We cannot always guarantee loans as each person has individual circumstances but in most cases cheaploansforyou will try and source the best loan for you. |
