Is It Possible to Avail a Homeowner Loan Without a Mortgage?

Home has many symbolic fundamentals that are embedded in the brick and mortar of the whole house. It speaks of our belief, emotions, values and memories and we certainly have a strong emotional association with it. We always start reconsidering our decisions when it comes to using our home as a mortgage to borrow money in times of need. With the evolution, things have changed and so the ways to borrow money. A property owner who owns his home outright can now avail a homeowner loan without keeping it as a mortgage. Yes. That’s possible. Your home is your most prized possession and using it as a collateral to access some extra funds enforces you to rethink on your decision.

Key Takeaways of this article:

• Unsecured homeowner loan
• What’s at stake?
• How to apply for a homeowner loan?

Unsecured Homeowner Loan

An unsecured homeowner loan is a type of personal loan that can be taken out without pledging any of your valuable assets as collateral. The loan amount that you borrow will be comparatively less than the loan amount that is offered on secured loans – where your property is tied to the loan. The loan can be taken out for a short period of time that generally lasts for several months. The general notion of many people is that when they opt for a personal loan, they have to arrange a co-signor who will be held responsible if they fail to repay the loan to the lender. However, that is not true. These loans are often called as no guarantor loans as you do not have to arrange a guarantor to avail a Homeowner Loan in the UK. That means you can easily get a loan without collateral and without a guarantor.

What’s at Stake?

This is the most important part of the borrowing process. What’s at stake when you are not offering any collateral or guarantor to avail a loan? What if you fail to repay the loan? What will be the consequence when you default on the repayment? There is something important at stake here – that’s your CREDIT SCORE.

A credit score is an important element of our financial life. Every loan you decide to borrow is governed by the status of your current credit score. If you miss your repayment or if you fail to repay the loan amount borrowed, your credit score will be damaged. Now, this has two major consequences that you must note:

1.Borrowing Capability: Once you end up with a damaged credit score, it becomes difficult for you to borrow a loan the next time. Because lenders assess your credit ratings before approving your loan application and if they see your defaults, they may turn down your request for a loan altogether.

2. Recovery Takes Time: It takes a lot of time, effort, and patience to boost your credit score. A damaged credit score cannot be improved overnight. You have to be consistent with your regular repayments in order to rebuild your score.

How to Apply for a Homeowner Loan?

A homeowner loan is at your fingertips. All you have to do is finalise the amount you need to borrow, decide the repayment tenure, compare homeowner loans on loan comparison websites to find the best deal and apply. Make sure that you are dealing with firms licensed by the Financial Conduct Authority to avoid getting into any scam. Whether you are looking for Homeowner Loans in Birmingham or some other part of the United Kingdom – you can get a loan in a trouble-free manner online with minimal documentation.