In many ways, it’s never been a better time to be a homeowner. With the stamp duty freeze of recent months and house prices on the rise regardless of the pandemic, if you own your home then you are officially one of the lucky ones. But all the homeowners out there will know all too well that a homeowners work is never really done but all that work comes at a cost.
What is a homeowner loan?
So, how does a homeowner work? A homeowner loan is generally for a lump sum of under £50,000 that is secured against your home and is often used to either make a major lifestyle purchase (like a new car) or make some renovations to your home to increase its value. You can generally pay the loan back at your own pace (up to around 35 years) and the amount you can borrow will be based on the value of your property.
It can be seen as a game by some but because you’re likely to be adding value to the home itself it’s not as big a risk as you might think. And just imagine all the incredible things that homeowner loan could accomplish!
Whether you want to take ‘the easy option’ and add a conservatory to your home for relaxing in the summer sun or add another floor to your detached home, you’re going to need two things – planning permission and funds. It’s unlikely that a regular unsecured bank loan is going to cover the amount you need but a flexible secured homeowner loan should just about see you through. The same is true if you’re in the market for a new kitchen or bathroom. They are not a cheap makeover, after all.
Doing up the garden
We’ve all been spending a lot more time in the garden over the last year and as such, thousands of us have decided to spend the money we would have spent on a big summer holiday on the garden instead. If you’re just looking to put down some decking or return the lawn then a homeowner loan might be overkill but if you really want to completely transform your garden then it might be your best bet.
Finally, if you’ve managed to work yourself into a bit of a debt hole then a secured homeowner loan could be just the ticket for digging yourself out of it. It will not only significantly lower the interest rate you pay on the debt but will simplify the process of paying off your debts too by putting them all together in one convenient place.