Debt Consolidation Homeowner Loans
If you are looking to borrow a significant amount of money and you are the outright owner of your home, then you might be eligible for a homeowner loan.
Homeowner loans let you use your home as collateral against the money that you borrow, allowing you to consolidate your debt into one manageable chunk.
Let’s take a look at what homeowner loans are and why you might want to take one out.
What are homeowner loans?
Homeowner loans are otherwise known as secured loans. You’re only able to apply for a homeowner loan if you own your home outright, as they are taken out in equity against a property.
Homeowner loans are often seen as a way to consolidate debt, as securing this loan against an important piece of property, such as your house, enables you to borrow a large sum of money, usually as much as £100,000 in some cases.
Payments are made over an agreed period of time, but this can be as long as 25 years in certain circumstances.
Of course, this isn’t a loan you just want to take out with little thought. While this can be a large loan and potentially help solve your debt problems, it also comes with significant risk.
If you default on your payments, you can lose your home.