Homeowner loan is basically secured loans. This requires you to pledge your property as security. This is possible only for those who own a home. Homeowner loans are thus the special privilege of the homeowners.
Homeowner loan can be availed by any homeowner and legal resident of UK whose age is not below 18 years. It is an open secret that lenders are more open to lending homeowners as they feel more secured with them. The pledging of property provides them the assurance of repayment. Homeowner loan is thus quite popular in UK.
A homeowner loan, since it builds the confidence of the lenders, ensures for the borrower several benefits. The rate of interest on the loan amount is lowered to less than 7 % although it may go a bit higher for those with bad credit history. The terms and conditions, which includes the tenure of repayment, is relaxed. This results in reduced monthly installments, which are thus convenient to pay off.
Another feature of a homeowner loan which stands to a borrower's benefit, is that large loan amounts can be got approved. Much of it depends on the value of your home equity.
Since a homeowner loan is based on your property pledged as collateral, it is obvious that your property is at some form of a risk. This risk can become an ordeal, in the event of your inability of repayment. The home of the borrower can be repossessed if she happens to be regularly defaulting on his/her repayments. This means that the borrower should not be lax in repaying and take care not to overspend.
Homeowner loan is also an ideal option for all those who have huge bad debts. This is because the fairly easy terms and conditions of these secured loans makes debts more manageable. Secured debt consolidation for homeowners is a similarly good idea. Homeowner loan is, on the whole, for everyone who wants a loan to fulfil some important need.