Secured Homeowner Loans solutions from Shire Direct...
Secured Homeowner Loans are just one of many tailor made financial solutions that Shire Direct are able to provide as a means of raising additional finance.
As professional Mortgage Advisors, we will always consider the alternatives that may be open to you when you are considering raising additional finance. One of the alternatives that we will take into account when providing you with advice and a recommendation will be a Homeowner Secured Loan.
Below we provide details of Homeowner Loans as a form of raising finance, we'll look at their potential benefits and downsides, and explore the help Shire Direct are able to provide when it comes to a Secured Homeowner Loan.
Secured Homeowner Loans solutions -
Table of contents:
Secured Homeowner Loans and the alternatives
Generally when you, as a homeowner, are looking to raise finance, you will generally have one or more of the following options open to you:
Naturally, a professionally qualified mortgage advisor will carefully assess your circumstances, needs and aspirations, and will weigh-up the benefits and disadvantages before making any recommendation to you. In many cases the most appropriate solutions will automatically surface because of rate or speed required. However, there will be occasions when the task may not be as straight forward as originally envisaged, especially when aspects such as Early Repayment Charges (ERC's) and overall costs of funding are taken into account.
The Benefits of Secured Homeowner Loans
There are substantial benefits of using a Homeowner Loan especially in the following circumstances:
- Flexibility:
Homeowner secured loans lending criteria generally permits a greater degree of flexibility in instances where borrowers may have adverse credit registered against them, such as County Court Judgements (CCJ's), credit defaults, or mortgage arrears.
Conversely, an unsecured loan or a further advance from the existing lender may well view funding to be inappropriate to borrowers having a poor credit score.
- Larger Loans:
Because security is available, Homeowner Loans of up to £100,000 may be considered subject of course to affordability.
Whereas the maximum unsecured loan will usually vary between £15,000 and £20,000 - and often much less!
- Repayment Terms:
The Secured Homeowner Loan plans are usually available for any period between 5 and 25 years, whereas an unsecured facility will usually have a maximum term of between 5 and 7 years.
- Competitive Interest Rates:
Because of the available security, the interest charged on Homeowner Loans is normally much lower than an equivalent unsecured loan product. Indeed, depending on the applicant's status, larger secured loans can be arranged at interest rates just marginally higher than mortgage rates.
- Saving Costs:
Although raising funds by a remortgage may at first sight seem more attractive because of the interest rate, the Homeowner Loans route may be more prudent in certain instances. For example:
- Early Repayment Charges amounting to thousands of pounds may have to be paid if your present mortgage is in a lock-in period.
- If you have adverse credit registered against you, the replacement of your entire borrowings would be switched to non-status interest rates, when you may currently be enjoying much lower rates on your existing mortgage. Thus, only the Homeowner Loan may be subject to non-status interest rates.
- Speed:
The processing of a Secured Homeowner Loan is generally quicker than processing a remortgage. However, because Homeowner Secured Loan plans are regulated on amounts of up to £25,000, customers must serve an initial cooling-off period of 7-days. Larger loans of £25,001 or more have no such restriction as they are unregulated. On average, Homeowner Loans will take between 15 and 20 business days, whereas the average remortgage transaction will take approximately 4-6 weeks (depending on circumstances).
The downsides of Homeowner Loans
- By taking a secured loan over a longer period, even though the interest rate may be more competitive than a shorter-term unsecured loan, you will repay more in interest charges.
- Because the Homeowner Loan is a secured loan/second mortgage, it will be secured against your property, and in the event you default on your payments, you could face repossession of your home.
- Secured Homeowner Loans are usually operated on a variable rate basis, and therefore it is not possible to predict your repayments into the future. So, if interest rates increase, so will your repayments.
Homeowner Loans: Solutions and help from Shire Direct!
Can Shire Direct advise me on the solutions available to me, and arrange a homeowner loan if that's the best route for me to take?
Yes, we certainly can!
We not only provide mortgage funding, we are also licensed by the Office of Fair Trading under the provisions of the Consumer Credit Act, and we are therefore able to consider and arrange secured homeowner loans where they are likely to be more appropriate.
Remember, our qualified advisors are available to discuss the options open to you seven days a week from 8am until 10pm on our Freephone line 08000 282 281, or alternatively why not enquire online at any time. The first thing we like to do is understand your circumstances and requirements. Advice and service always come first at Shire Direct.
You'll find our service to be friendly yet professional, helpful and unstuffy. So please don't hesitate to contact us if you would like to discuss your requirements, obviously without obligation!
That wraps up our look at Secured Homeowner Loans and the help Shire Direct are able to provide - don't forget we're only ever a free telephone call or a couple of mouse clicks away and would love to hear from you!
Mortgages/Remortgages: The overall cost for comparison is 9.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances. For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
Homeowner Loans: Rates from 8.9% APR variable, but typically 13.9% APR variable. Most customers are likely to receive a lower rate or the same rate as our typical variable rate - learn more about APR. Shire Direct also has a range of non-conforming loan plans with rates up to 19.9% APR. These plans are designed to help those who may have a more difficult credit history, including CCJ's and credit arrears, IVA and bankruptcy problems.
A broker fee of between 0% and 10% of the loan advance may be charged for arranging a secured loan.
All loans subject to status and secured on property.
The actual rate available will depend upon your circumstances. Written quotations on request.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
