"Starting to feel there's a light at the end of the tunnel, thank you"
Mr G., Oakwood, Derby
If you are looking into raising finance and are a homeowner, the chances are there will be a number of different methods available to enable you to obtain the funds you require.
On this page we take a comparative look at the main different methods of Raising Finance, along with the advantages and pitfalls of each of these different methods. We also take a look at what you need to take into account when it comes to raising cash and how we might be able to assist you even if you have credit difficulties!
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So, if you are a homeowner and are looking into raising finance, there is a fairly good chance that you will find there are a number of options available to you so that you can raise the cash you require. If you are looking to raise funds for a business or commercial venture, then why not head on over to our page on raising finance for a business.
In the sections below, we go on to discuss some of these different methods of raising cash, and which may be best for you.
There are a number of different options available when it comes to raising finance, and most homeowners are able to select from one of the following methods of raising cash:
Naturally, the method of raising finance that's best for you will depend up on the amount of money you need to borrow, your circumstances and your priorities. Next up we investigate some of the different things you will need to take into account when it comes to raising finance.
Well, it really is worth doing a bit of homework before committing yourself to any particular way of raising finance. There are lots of aspects to take into consideration when it comes to looking at raising cash, and these will usually include:
Carefully assessing these facets will narrow the field, and help you select the most appropriate method of raising finance.
So, let's take a closer look at the different ways of raising finance and consider the possible benefits and disadvantages.
The interest rate you are likely to pay will vary from lender to lender. The additional funding will either be added to your present balance, and will be spread over the remaining term of your mortgage, or a separate account will be set up running over a term that suits you. The interest rate is likely to be competitive; although special deals, such as fixed or discount products, will usually not be available.
However, if you have experienced difficulties with your finances in recent times, for example: missed mortgage payments, credit defaults or county court judgements (CCJ's), then your lender will often refuse to advance additional funds. For further information please visit our Further Advance page.
A Remortgage is when you switch one lender for a new one. If you do arrange a remortgage, it's likely that you may be in a position to negotiate a special deal, such as a fixed or discounted rate, or even a cashback, thereby potentially saving yourself thousands of pounds! To raise the finance, you simply combine the extra funds to your present mortgage borrowings, and arrange the new mortgage over the appropriate term.
However, you must also take into account any early repayment charges (ERC's) you may be charged by your present lender, and the attendant costs of purchase, including valuation fee, solicitor's costs, mortgage broker fees etc. For further information on Remortgages, why not visit our Remortgages explained page.
As a homeowner, it may be possible to raise funds by taking out a loan secured over your property by way of a second mortgage. There are certain advantages to taking this route and these include the fact you have a better choice of repayment terms and you'll find that you can spread the repayment between 5 and 25 years, because the loan is secured the interest will usually be more competitive than unsecured borrowing.
What's more, if you are currently locked into your present mortgage, you may well have substantial early repayment charges (ERC's) that could be invoked if you remortgage your home. Funds raised by way of a secured loan will leave your present mortgage arrangements in place, and the ERC's will not be applied.
You will usually be considered for a secured loan even if you have adverse credit registered against you, such as CCJ's, arrears or defaults.
The interest rate on a secured loan is usually more expensive than that of a remortgage but is usually more competitive than many unsecured plans. For more information on Secured Loans why not visit our Secured Loans page.
Most unsecured loan plans can be arranged over any period between one and five years, although some lenders extend their terms to seven to ten years. The advantages of borrowing on an unsecured basis include the speed of arranging the finance, and of course security is not required. Similarly the loan will not depend on the available equity in your home!
However, there are downsides. The rates of interest are often much higher than if the borrowing were secured, and should you have less than a perfect credit score, your application is likely to be unceremoniously declined!
Because the maximum repayment term is usually much shorter than either a secured loan, remortgage or further advance; coupled with the fact that interest rates can often be higher, larger borrowings can often be quite prohibitive and unaffordable. For a more detailed look at Unsecured Lending, take a look at our Unsecured Loans page.
Credit cards can be useful for purchasing consumer goods, and for payment of a wide range of services. Provided you make the minimum payment each month, the flexibility extends to you being able to repay more of your balance as and when you want. Furthermore, if you require cash in an emergency, most credit cards provide a facility to withdraw up to your credit limit from a participating bank branch.
However, there are disadvantages. Cash withdrawals are now subject to an immediate charge of up to 3% of the amount withdrawn, and monthly rates charged on balances can be quite expensive, and APR's of 20% upwards are not uncommon. We take a closer look at using Credit Cards to raise funds on our Credit Card Advance page.
Most parents have at some time or another subsidised their offspring to one extent or another. There's usually no cheaper way of borrowing, due to the fact that most parents will not charge interest! However, because they have handed over their hard-earned cash to their children over the years, it may be that their own coffers are all but empty!
You may of course want to keep your financial affairs private, and would prefer not to approach family members.
But what about great Aunt Fanny? She's got loads of money...!!!
Joking aside, why not visit our 'Borrowing Money from Family' article where we investigate this option in more detail.
Yes, absolutely!
So, if you're a homebuyer, a brief call to one of our Advisors will hopefully do the trick! Naturally, we'll carefully assess your circumstances, needs and requirements as well as your aspirations and hopefully we'll be able to come up with the most appropriate solution for you.
However, please bear in mind that we only arrange mortgages, remortgages and homeowner secured loans. We'll leave great Aunt Fanny to you!
Usually, yes we can!
We have a wide range of plans to suit most circumstances in our mortgage and loan portfolios, and we specialise in providing solutions, even in the trickiest of circumstances.
We believe you will find our service to be professional, helpful and friendly, and we'll always listen with a sympathetic ear, we're not here to be judgmental! So, please don't hesitate to contact us if you would like to discuss your requirements, naturally without obligation. You'll be able to reach one of our professionally qualified advisors every day until 10.00pm on Freephone 08000 282 281, or why not enquire online at any time, and we'll be delighted to provide you with an in-principle decision - whatever your circumstances. So get in touch with us now, you'll be glad you did!
Well, we hope we've been able to successfully explain some of the different ways of raising finance if you are a homeowner. Remember, when it comes to raising cash, there is a wealth of information and help available throughout our website - don't forget to try our handy Site Search Tool near the top right hand corner of every page to pinpoint precise information you are looking for within our website, and we're only ever a free phone call or couple of mouse clicks away!
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.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
