SimplyFinance - Homeowner Loan

Saving Money with a Homeowner Loan

2007-08-12T23:00:00Z

Buying a house is one of the biggest financial decisions you’ll ever make. Perhaps you are looking to refinance and get a secured loan against your home for home improvements, debt consolidation or other expenses. We’re here to provide some tips on how you can save money on mortgages and homeowner loans.

If you’re purchasing a home, after you’ve narrowed down how much you afford, checked your credit and started looking around at properties, you’ll need to decide on a mortgage lender. One of the best ways to save money on your loan is to comparison shop lenders. Where should you shop around? Check with your bank, credit union or other direct lenders. The internet is a great place to comparison shop, as many of the lenders offer online only incentives and discounts. If you are a first time buyer, there are many lenders that offer programs specifically to suit your needs. If you’re interested in a homeowner loan, check with your existing lender in addition to shopping around. Currently the UK has one of the most competitive markets for home loans. Several factors will help you get a better loan.

Whether you’re refinancing or purchasing a new home, the better your financial health, the better chances you’ll have at getting a lower interest rate and better loan terms because lenders will be more apt to give you a better rate since you’re viewed as less of a credit risk than someone with poor credit. Make sure your credit report is accurate as this will affect your ability to negotiate with your lender. Even seemingly small errors, such as your address, can affect you.Even if you don’t have the best credit, there are lenders that will be willing to work with you. It’s still important that those with less than perfect credit shop around for the best rates and terms. Accepting the first offer you receive simply out of convenience or because you don’t think another lender will offer you a better rate due to your credit score is doing a disservice to yourself.

Beware of lenders that don’t offer you their rates and terms up front. If they are not willing to tell you what your payments will be, its wise for you to move on to another lender. Many banks and lenders will require you to go through the application process first. Although it’s critical to shop around in order to get the best loan, you also don’t want too many loan inquiries against your credit, as this can damage your credit rating. Do research on the lender prior to moving forward with the application process.Make sure that the loan terms are something you can realistically live with. It might make the most sense for you to go with an interest-only loan, or a repayment loan, depending on your long term goals. Ask yourself if you can afford the monthly payments. If you’re unable to repay the loan within the terms, it doesn’t matter what the interest rate is or the size of the deposit, you’ll be facing additional fees for defaulting on the loan.

Another area that will save you money is checking what the lender charges for an application fee (many are non refundable should the loan not work out) and a closing fee. Often there are hidden fees, such as insurance tie-ins, payment protection, exit fees (should you decide to pay the loan off early if you find a better rate later on), or late repayment fees. Before you sign the loan, read the fine print on the fees.

Let our services work for you. Whether you’re looking for a mortgage or getting a homeowner loan, taking a moment to fill out a simple contact form, and SimplyFinance will introduce you to a lender or broker who will help you get they type of loan you need.

CLICK TO APPLY FOR A MORTGAGE TODAY!

The Process and Fees for Getting a Homeowner Loan

2007-08-12T23:00:00Z

Embarking on getting a loan for a new home (a mortgage) or for your existing home, referred to as a homeowner loan, can be a daunting task. We’re here to help you take the guess work out of the process and the fees so you’ll be better prepared to undertake this challenge.

The process for getting a mortgage involves several steps, some of which happen simultaneously. First you’ll need to determine how much you per month you can pay. Be sure to factor in insurance payments, lender's fees, interest, etc. into your monthly budget when you calculate this amount. Then you’ll need to work out the repayment terms; generally there are two types of mortgage loans, interest only and repayment loans. For each repayment type, there are several ways you can repay the interest of the loan: fixed rate, variable rate, capped rate or discount rate. We cover the pros and cons of each loan type on our website if you need more information on this. Next, you will make an offer on the home, ‘subject to contract’. Once this has been accepted, you will work with your solicitor to create a contract. Then the property will be inspected by a surveyor to determine the value. Many times adjustments to your offer will be made after the surveyors report is complete.

At this point you apply for the mortgage loan with your preferred lender. Frequently lenders will work with you prior to choosing a house so you know how much they will lend you, called a Decision in Principle (DIP). In either case, the lender will request the following information from you, sometimes more depending on the lender: income, identity, address, employment status, the kind of property, reference checks, as well as a credit check. You will also fill out the lender's application. They will usually have a valuation performed on the property to make sure the home is worth the amount of the loan. Once you’ve been approved, a formal offer will be made through your solicitor and they will draw up contracts. Contracts will be exchanged with the seller of the home, and many times you will pay the deposit. Once signatures have been made on the contracts, the sellers are paid with the mortgage.

There are many fees associated with a mortgage which you will need to consider while you are shopping around for the best rate, loan and lender. Mortgage application fees can run upwards of several hundred pounds. Many times a lender will charge a mortgage indemnity fee premium if you only pay a small deposit, usually less than 25%. It’s not a mandatory fee, so if you’re planning on paying a small down payment, check around with many lenders to see if they charge this premium. You may also be require to purchase Mortgage Payment Protection Insurance, so this is another expense you should be ready to cover. Exit and redemption fees are penalties charged should you decide to refinance your loan or if you decide to pay the balance off prematurely. As with any loan, read the fine print to see what a lender will charge you if you decide to pay the loan off early or refinance if you find a better rate a few years later.

Getting a homeowner loan, a secured loan against the equity of your home, can be a great way to finance home improvements, pay for college, consolidate debt or pay for other major expenses. Luckily, the process for this loan is usually not as laborious as the mortgage application process. Since your house is your collateral against the loan, lenders usually offer better rates and loan terms. The lender will have an application for you to complete, and they will work with you on how much you can borrow against your home, sometimes as much as 125% of its value.

You can expect fees associated with a homeowner loan, including but not limited to the following. An arrangement fee, which can cost several hundred pounds, is sometimes non refundable. If you decide to pay off your loan early you will often be charged an exit fee. Once again, the amount varies between lenders so make sure you check this before signing the loan documents. Some companies will charge you an insurance fee if you decide to get insurance through a company they are not affiliated with. Finally, check with your lender on how they calculate interest. Annual interest will cost you more than if they calculate it based on a daily rate. If you’re looking for the best rates on a mortgage or a homeowner loan, complete our quick and easy application form to have SimplyFinance's lenders get started competing for your business!

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!

Secured Loans for Homeowners

2007-07-25T23:00:00Z

A homeowner secured loan is available to homeowners for a number of different uses. You may want to do some home improvements, put an extension on your home, make a large purchase like a car, take a much needed holiday, or you may need the money to pay for a major life event like a wedding or your child’s schooling. In any of these situations, a homeowner secured loan may be right for you.

A homeowner secured loan is especially for those who own a house. Because lenders are providing you with a very large sum of money, they require security that you will repay the loan in full. This security comes in the form of you putting your home down as collateral. Lenders are able to repossess your home if you are not able to repay the loan’s full amount in the agreed upon amount of time.

You can get a homeowner secured loan with a low interest rate. Lenders are able to offer low interest rates because there isn’t much risk involved for them in this type of loan due to the fact that most people are prone to being very conscientious of their payments as their home is on the line if they default.

Searching for the best homeowner secured loan rate is slightly more complicated than searching for a different type of loan. First, you may want to check with your existing mortgage lender to see if they are able to offer you any special rates or discounts seeing as you are already a customer. In fact, if you choose to get a homeowner secured loan from your existing lender, the process will be quicker as well since they already know the details of your financial history and of your payment patterns. However, even if your lender is willing to provide you with a good deal, you may still want to shop around just to make sure you can’t find anything better.

Unlike in the past, it is now much easier to apply for a homeowner secured loan. Now, most lenders provide online application forms for you to fill out. You can apply in seconds, and often you can get a response in only minutes. Applying for a loan online also affords you the opportunity to compare different lenders’ rates with just the click of a mouse. Many lenders provide comparison tools so that you can see quotes from different lenders and compare them side by side.

When deciding whether or not to approve you for a homeowner’s secured loan, a lender will look at your credit history, the value of your home, how much you still owe on your mortgage, as well as any other outstanding debts. After considering all of these things, you lender will help you find a payment plan that is right for you.

If you'd like help finding the best homeowner secured loan, take a moment to fill out our short questionnaire, and a SimplyFinance representative will contact you shortly to introduce you to a homeowner loan lender. This lender will help find the best homeowner secured loan deal for you.

CLICK HERE TO APPLY FOR A SECURED LOAN TODAY!