Your home-it’s your abode, your possession, your expectation. But do you know its valuation in loan market? Yes! The worth of your home in the loan market is important indeed. How? Well… if you are a homeowner and want to apply for a loan against your home then you can apply for a secured loan, as secured home loans are available in loan market.
Secured home loan- as the name refers, these loans are secured on the borrower’s home. With these loans, borrowers can borrow the amount ranged from ₤5000- ₤75000 along with a repayment period of 5-25 years.
However, secured home loans are facilitated with following facilities:
• Since the loan amount is secured on borrowers’ home, thus these loans are facilitated with low interest rate facility.
• As security covers the risk of lending money, thus with these loans borrowers can avail relatively high amount that could be 125% of value of your home and the repayment period is longer too.
• The terms and conditions of these loans are flexible and suitable with everyone’s need,
• These loans are also available over the internet.
In this context, it is necessary to mention that secured home loans are available at various rates of interest. These are as follows:
• Secured home loans at fixed rate: In this option, borrowers have to pay a fixed rate during the whole loan period. The most important point of fixed rate of interest is that it is not affected by any changes in loan market. It means if the rate of interest hikes up suddenly, then it will not affect the fixed rate.
• Variable rate of interest: In case of variable interest rate, the rate of interest differs according to the changes in loan market. It means if the rate of interest hikes up then borrowers have to pay more and if it reduces then borrowers have to pay less.
Besides these two, secured home loans are available at balloon rate, capped rate of interest etc. A borrower can choose the rate of interest according to his needs.
Secured home loans are used for various purposes. Some of them are mentioned below:
• Home improvement
• Business purposes
• Paying of debts
• Medical expanses
• And even these loans are available for buying home too.
Secured home loans are secured on home. With these loans borrowers can access money to fulfill various purposes. Even more, these loans are used for buying home as well.
No comments: