Hot Topics

What is a Home improvement Loan?
Many people choose to take out home improvement loans so they can give their house a new look before selling.
Should I get Personal Loan Payment Protection Insurance?
When you apply for a loan, you will be asked at the initial stages if you want personal loan insurance to be included in the agreement
What if I die before my loan is paid off?
If you die before your loan has been fully repaid, the loan will still need to be repaid by your estate. This may mean that your family will have to cover the cost of the loan for you.
What happens if I can't meet the loan repayments?
If you are having problems repaying the loan, you will need to talk to your lender straight away to discuss the problem.
Is there a way to get a debt consolidation loan that does not require offering your house as security or a way to get a debt consolidation loan if you do not own a house?
You do not have to take out a secured loan in order to consolidate debt, but you are likely to pay a higher interest rate if the loan is unsecured and you are not a homeowner.

What is the maximum value of the secured loans I can have in relation to the value of my property (LTV ratio)?

The industry average for the LTV ratio (Loan to Value Ratio) is 75%. This means that if your property is valued at £100,000 – you will be able to borrow £75,000 against it. It may be possible to get more than that – for example 85% or 90% - however you will need an excellent credit history and must in general be considered a ‘no risk’ customer by the loan provider.

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If you want to take out a secured loan against your home, you will have to have an appraisal to work out the value of the property. On this figure the lender will decide the maximum amount you can borrow against the property.

Especially in the current environment where house prices are rising and rising, homeowners are getting the chance to borrow large sums against their house as the value of their property soars. The risk here is that you will end up in negative equity. This happens when house prices fall, and lenders find that they have borrowed more than the value of their house. As a result, each month you would be paying interest on a loan greater than the real value of your property. This only becomes a real problem when moving house, as you will owe thousands of pounds more than your home is worth.


Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.