UK Secured homeowner loans from Nemo
Nemo Personal Finance provides secured loans for homeowners in the UK. This could be worth considering if you’re looking to consolidate existing credit into one place. Perhaps you have several credit cards, and a store card or a personal loan and you’re finding making multiple monthly repayments confusing. With a secured homeowner loan from Nemo, you’ll know exactly how much your monthly repayments will be. On the other hand, perhaps you have a project coming up, and you need funds for your next big home improvement. With a secured loan for homeowners from Nemo, you could borrow the funds to make your home improvements a reality.
How are homeowner secured loans different to a normal personal loan ?
Once you decide whether a secured loan is the option for you, you might be wondering how one works and how it differs to a normal personal loan. To apply, you’ll need to be a homeowner with a mortgage. Your secured loan will form a second charge on your property, with your mortgage being the first charge. The order of the charges is the order they are paid off if the house is ever sold. A secured loan differs from a personal loan because your home offers the lender some security. You don’t need to be a homeowner to take out a personal loan.
What the value of your home means when taking out a secured loan
To make sure there’s enough value (also known as equity) in the house to repay all charges, lenders carefully assess the value of your home before offering a homeowner secured loan. All lenders have a set percentage of your home’s value that they will lend up to (referred to as an LTV calculation). For example, if a company will lend 80% of your property’s value (less your mortgage) and your home was worth £100,000 you’d work out 80% of the value and then subtract your mortgage balance to calculate the amount you could borrow. So it would be 80% of £100,000 = £80,000 then minus your mortgage balance, lets say it’s £50,000, = £30,000. You would be able to borrow that amount based on equity, subject to other factors such as affordability. As a property’s value is so important to Nemo’s ability to offer you what you are looking for, we cover all the costs in getting a valuation done for you!
To return to affordability, mentioned earlier, as well as keeping things simple and uncomplicated, Nemo is also a responsible lender. We won’t allow you to have a secured homeowner loan which we feel is over what you can afford to repay. We’ll also consider what income you have coming in and what money you have going out each month to make sure it all adds up.
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