How You Can Get The Best Debt Consolidation Plan By Ingen You’ve made the huge decision that you are in debt – for whatever reasons - spending more than you earn, loss of a job, a recent illness, the bills, and credit cards just keep mounting up.It Read more...
7-proven-steps-to-fix-your-personal-finances-that-you-can-implement-right-now By Bruce-Hokin Fixing your personal finances is not rocket science. You can do it if you apply some commitment and are prepared to stick to the plan. Imagine how your world could open up if you were debt free. Read more...
Find Your Hidden Money Today! When a person seeks out a loan, he aims for the minimum rate of interest. The rate of interest he decides on will be fixed for the entire duration of his payment plan, so he must choose wisely the Read more...
Your Home Secures Your Debt By Keith It is your home that secures your debt in a mortgage as well as a second mortgage. Mortgage lenders are always on the lookout for new ways to earn more money from homeowners and they are often Read more...
Real Estate Investing Options For Novices By James There are various options and strategies that yield different results. Given below are a few strategies that can help you in your real estate investing mission. It is important to understand the risk Read more...
Homeowner Loans - Are They Different From Secured Loans? Let's face it, getting a loan can sometimes seem traumatic. Where do you go to get a loan? How much can I borrow? What sort of loan is best for me? ...and i'm guessing that these are only some of the questions you've asked yourself recently, right?
If you're a homeowner, it's even worse in some respects because there's a much wider choice available to you and yes, it includes homeowner loans and secured loans.
So, what's the difference?
Well, the truth is - "not a lot"! There are many providers out there, lenders and brokers, that use either one or the other term, but in reality, they mean the same thing. So, if you're looking for a loan and intend to use some of the equity you've built up in your property, then a homeowner secured loan could be for you. (Sorry - that means the same as homeowner loan and secured loan as well! Getting a little carried away with the choice thing there for a minute!)
If you don't have a mortgage, ie you own your home outright, then you cannot opt for a secured loan. This is because in the loans industry, the correct technical term for a secured loan is a 2nd charge loan; so called because a mortgage is a first charge. If you defaulted on your mortgage, the mortgage lender would be able to foreclose on their loan and receive proceeds from the forced sale of your property, equal to the amount they are owed, before a 2nd charge or secured loan lender was able to claim their share of the proceeds to cover their loan to you. So, you can't have a 2nd charge on your property if a 1st charge doesn't exist.
Similarly, if you rent your home, ie you're a tenant, you cannot apply for a homeowner or secured loan because
you do not own the property. You will have to go for a personal loan or an unsecured loan (by another name). Confusing isn't it?
What can I use a homeowner loan for?
The most common purpose for a homeowner loan is debt consolidation (converting lots of existing credit into one secured loan). This happens at any time of the year but is especially common just after Christmas and the summer holidays, when many people have decided that they can reduce their interest payments on credit cards by opting for a homeowner loan.
The next most popular reason is home improvements. If you're having the builders in or even doing it yourself, you could use the bricks and mortar you already have to help you to raise the cash necessary to cover the costs of the changes you want to make.
..and other common reasons for taking out a homeowner loan are:-
- a luxurious, far off holiday - a new car, caravan or motorbike - a wonderful wedding to remember, - or just to treat yourself to something special.
So what are you waiting for? Go on, pamper yourself! A homeowner loan is easier to apply for now than ever. It'll only take a few seconds to enquire with an online loan broker and you could have a decision in principle back to you within minutes. Of course, you'll still need to complete and sign a credit agreement and make sure that you allow enough time for the loan to complete which is typically around 4-6 weeks. Happy hunting!
Andy Silk is FinanceGuru at FeelGoodLoans.co.uk, specialists in all types of loans and mortgages for UK homeowners and tenants. Visit for more articles.
What Are Money Market Funds? By William Mutual funds that invest in short-term debt instruments are called as the money funds, and markets that deal with such funds are known as the Money Market Funds. These funds provide the benefit of Read more...
