No one likes chipping walls and windows with missing bolts, highlighting a “home” in a weary state. However the shortage of funds and bad credit rating forces one to compromise their lifestyle. Whether you need immediate repair or renovation work, being a homeowner you have more than available sources of funding.
Bad credit worth with mortgage
Most of us feel burdened with decade long home loans as they hurt the credit worth. Wherein, despite the current mortgage you have an option to avail low cost homeowner loans with poor credit score. By applying for a secured homeowner loan you can conveniently avail low cost instalment loan without any additional charges.
In the last ten years, the United Kingdom has witnessed the rise of FinTech industry. The options for borrowers are available in plenty today. And anyone who can afford the loan can avail flexible borrowing options from private loan partners who are accessible online.
What are home owner loans?
Homeowner loans are basically the second charge loans which are borrowed against your home despite the current mortgage. Bad credit is not the only reason to apply for the same. Most people resort to homeowner loans when they need fat loans at low cost despite high debt to income ratio.
With current mortgage, the balance home equity available for loan is calculated after deducting the balance mortgage value from the market value of home. Depending on the value of home equity you own you can apply for a homeowner loan.
How safe it is to borrow with poor credit rating?
As long as you can manage timely repayments, it is absolutely safe to apply for home improvement loans. It is worthwhile to note here that home improvement would add to the value of your home and thus availing a loan for the purpose is completely justifiable. Also, it is always an enriching experience to live in a beautiful home. Your surroundings have a significant role in welcoming the positive energy in your life.
Being a homeowner your loan application carries more weightage than those of non homeowners. Lenders rate credit repayment capacity of homeowners better than tenants and thus they prefer the applications of those who have assets.
How do homeowner loans work for home improvement?
You can consider contacting a loan broker and search out the best rates of loan available in the UK. Not too many lenders deal with bad credit borrowers and thus choice is bit limited with bad credit rating. With a broker by your side you can avail choice as they are experts in locating tailored deals. You can look at both pros and cons of each deal and make an informed decision after comparison.
There is no restriction whatsoever on the use of homeowner loan. However, it is recommended to be disciplined and have a defined road map to exhaust the loan amount and keep a tab on your expenses.
The duration of home improvement could vary according to how many projects you want to undertake. If it is very small repair work like mending a bathroom ceiling or replacing a fitting or something alike, you may consider availing a short term loan. It is possible to apply for unsecured loan and not raise a loan against property. The choice should be made after considering the total cost of loan and your repayment capacity.