Just over a decade ago homeowners in the UK that had recently bought properties found themselves trapped in negative equity, as house prices tumbled leaving them owing more on their properties than the property was actually worth. However, all of this has changed over recent years, and existing property owners have seen the tables turn, as equity levels have rocketed leaving them with an impressive nest egg tied up in their homes.
Over recent years property values in the UK have rocketed, and those that were once in negative equity have found themselves enjoying high equity levels and far greater financial leverage than they imagined they could even enjoy. Homeowners in the UK have enjoy a number of years of steady growth, and the equity levels that have come from this growth have given many homeowners the opportunity to enjoy getting affordable finance for one of a range of purposes.
If you have seen the equity levels in your home rocket over recent years then you could be one of the many homeowners that get to enjoy low cost borrowing in the form of a homeowner loan. With a homeowner loan you can look forward to competitive rates based on your circumstances and credit status, as well as a number of other benefits such as increased borrowing power based on your equity levels and longer repayment periods to keep your outgoings down.
In order to determine roughly how much you can borrow in terms of a homeowner loan you need to find out what the level of equity is in your home, and this can be easily done. Simply get a market valuation carried out on your home, and then deduct any outstanding mortgage or secured loan balance. The remaining figure will be your equity level. Lenders’ policies on equity levels can vary, and whereas some will lend up to the total amount of your equity others may lend over and above the level of equity in your home.
You can use these homeowner loans for just about any purpose, and some of the most popular uses that can help you to make the most of your equity is to use the loan for something such as debt consolidation, which can save you money on your borrowing, or for home improvements, which can improve your quality of life and add additional value to your home. The good news with these homeowner loans is that because they are secured in nature they are often also available to homeowners with damaged credit, so they are far more accessible to those that have experienced credit problems in the past.
Loans4 provide homeowner loan solutions for homeowners. Please visit www.loans4.co.uk for the latest finance related news.