Home loans, also known as secured loans, are still viewed as "specialist lending" rather than mainstream (such as mortgages or personal loans.) Yet more and more consumers are exploring these alternative forms of borrowing. With £ 7.5bn of 2nd charge lending in the UK it is no longer a niche sector of financial services that can be ignored.
Although the home loan industry is suffering under the strain of the liquidity crisis in the UK, there are still a handful of dedicated lenders that are offering competitive deals to customers looking to raise funds using the equity in their home.
Home loans can be used for almost any purpose whether you are looking to make improvements to your home, consolidate debts, purchase a new car or go on holiday. Currently, most lenders offer finance from £ 5,000- £ 250,000 although many have limited the maximum loan amount that can be borrowed whilst funding issues continue.
Applying for a home loan is easy too and the best way to search and apply for a home loan is to go online. Just typing in home loans on any major search engine will return thousands of companies that can give you an accurate online quote and who have experienced advisers that are on hand to talk you through the process and available deals.
The online presence of secured loan brokers is more competitive now than ever before. And because lenders have withdrawn many of their home loan products, the top few that remain have either been limited in availability to just a panel of secured loan "master brokers" (brokers who do volume business) or are exclusive deals that you cannot obtain on the high street. In either case a master broker that ranks highly on the major search engines and one where you can talk to their advisers (and not get passed around to companies unknown who call you back as a "hot lead") is the best way of finding which loans are on the market, and more importantly, which one are the cheapest for your individual needs.
Home loan pricing in the UK has not really been hit by the credit crisis, compared to say the sub-prime mortgage market, and remains fairly consistent with previous years. With rates as low as 6.9% APR and upward of 22.9% depending on whether you have a clean or poor credit history they are still great deals to be had if you meet the lender's criteria.
Finally it is important to remember that although these loans are usually a more expensive way of raising funds than a traditional remortgage, they are designed to be a short term method of funding until you are able to remortgage your 1st charge mortgage and incorporate the home loan with a new lender.
CopyRight 2008 Gary Paul Taylor