Home Owner Loans UK
Don't lose your head – or your house
For most home owner loans UK customers use their home as security, which means that if they fall behind with repayments then they could end up losing their house. It's a big risk so make sure you can afford the repayments even if your circumstances change.
With home owner loans UK customers generally use their homes as security, which means that if the worst comes to the worst and the customer can't make the repayments, the lender could force them to sell their house. Such sales are a last resort for lenders but they can and do happen, so it's essential to make sure you can afford the repayments even if your circumstances change.
To reduce the risk of home owner loans UK consumers should think seriously about payment protection insurance, which covers the loan in the event of redundancy or serious illness. However, such insurance may not be available if you're in temporary employment or if you're self employed, so check with the lender before signing any forms. The insurance does add a hefty chunk to your repayments, but it's a price worth paying to protect your house.
Another way to reduce the risk is simply to make sure you don't borrow too much in the first place. If the payments are likely to be a stretch now, they could become a nightmare should your income drop or if you have a child.
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