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What is a Homeowner Loan?

A homeowner loan is a type of loan that is secured to your property. Since these loans are often taken together with a mortgage, they are often referred to as "second mortgage". As such, the mortgage is commonly known as "first charge" and a homeowner loan as the "second charge". This is a secured type of loan because of the fact that the property is used as a collateral, which gives the lending company legal right to sell it if you default on your payments.

How Much Money can You Borrow With This Loan?

Most homeowner lending companies offer between 3,000 and 100,000 per loan. There are two factors that determine this.

The first one is the amount of equity that your property has. This is the difference between how much your home is valued and the amount of loans you have attached to it. For example, if your home is valued at 300,000 and you have a 120,000 mortgage attached to it, the equity of your home is 180,000. You should note, however, that most loan companies will lend up to 90% of your property's value, minus any mortgages or secured loans attached to it.

The second factor you have to take into account before you can take this loan is your income. You have to demonstrate that this loan is affordable to you and that you are able to make your repayments.

How Long Do You Have to Repay the Loan?

A typical repayment term for this type of loan can be between 3 and 25 years. What's more, you can also choose a term that serve your needs best. As such, you can have it last as long as your main mortgage does, or you can have it paid before you go to retirement.

Is the Application Process Long or Difficult?

In most lending companies, such as UK Loan 247, the application process for homeowner loans takes between 3 and 6 weeks. Usually, it takes about a month before you receive your funds. Two things factor here heavily. The first one is the "cooling-off period", to which you have the right according to the Consumer Credit Act. During this period, you can think again on your loan application, and, if you want, pull back from it. The other factor is the time your application needs to be processed.

You should also keep in mind that your application is fully confidential and that lending company will not contact your employer, bank or any other party, unless you give them your written permission.

Who is Eligible for a Homeowner Loan?

If you are a homeowner and you fulfil the age requirement (18 or 21 year old), then you are eligible for this type of loan.

What can You Use the Loan For?

At Space Decks Loans you can get a homeowner loan for nearly any purpose. These loans can be used in order to take care of credit card debts, unsecured loans, buying a new car, or paying for the children's college tuitions. A homeowner loan can also be used for funding home improvements, like renovating the rooms, fixing the roof, buying a new kitchen or bathroom and so on. The loan can be used equally for the interior and the exterior of the house.

How Will You Receive the Money?

There are two ways to receive the money when you apply for a homeowner loan. You can either ask the loan company to give you a cheque, or you can give them your bank account number and have them transfer the funds there.