Find cheap homeowner loans available in the UK today.
Homeowner loans in the UK are normally cheaper than unsecured personal loans for tenants (although tenants can still get cheap low rate loans).
Lenders view homeowner applications more favourably as a homeowner will normally have been paying a mortgage, so assuming their mortgage payments have generally all been on time it will show a lender that they are a good credit risk.
Homeowners also have the added advantage of being able to apply for a secured loan – these are often easier to obtain than unsecured loans as lenders prefer to lend to people who show a commitment by offering them some sort of security.
Why a secured homeowner loan?
A secured loan is ideal for people who own their own house as it is often cheaper than an unsecured loan and comes with more flexibility.
Homeowner loans of this type are normally approved quickly and approval rates are much higher as lenders do not rely as heavily on a person’s credit rating as they do in unsecured personal loan applications.
Secured lenders (including major high street brands) are willing to offer low rate loans to homeowners that other lenders may consider too high a credit risk. People with CCJ’s, mortgage arrears, defaults can apply and be accepted quickly for secured loans.
Other people with good credit who may otherwise struggle to get a loan – such as the self employed and people with no proof of income are often able to get a secured homeowner loan at a very competitive rate.
Is a homeowner loan a cheap finance solution?
The cheapest loans in the UK at present are in fact homeowner loans (that are secured against a property).
They are also commonly used by homeowners for debt consolidation because a cheap homeowner loan can be taken for a much higher amount than an unsecured loan (homeowners can borrow between £5,000 and £250,000).
Lenders also allow the borrower to spread the payments over 5 to 25 years making them the ideal solution for those wishing to consolidate credit cards and existing loans into a lower single monthly payment.
However homeowner loans are not only available as a consolidation loan as they can be used for virtually any purpose, the most common uses being: debt consolidation, home improvement loans and car loans.
Which is the cheapest option for me - secured or unsecured homeowner loans?
Because most loan rates in the UK are based around your personal circumstances and credit score it is difficult for the public to find a loan they will be accepted for without having to apply for numerous loans (and been declined for a loan can actually damage your credit rating).
The best way to find cheap loans that are right for you is to use a licensed loan broker who offers a free search as they can check hundreds of homeowner loan plans in one search to find you a loan that you will be approved for first time (protecting your credit rating).
Decisionloans.co.uk have access to hundreds of the UK’s top lenders cheap loan plans and offer a free search facility to scan the market in minutes checking the rates of both secured and unsecured loan plans for you.