Home Owner Personal Loans
When you own your own home, lenders love you
The lowest interest rates – mortgages excepted – tend to be for home owner personal loans. There are two key reasons for this: many such loans are secured on property, which reduces the risk to the lender; and home owners are unlikely to borrow large sums and immediately flee the country.
Lenders love home owner personal loans, which is good news for consumers: if you own your own home then lenders will see you as a good credit risk, and as a result you'll find lots of firms willing to consider your application and willing to give you very low interest rates. The news is even better if you have a mortgage with the same lender: many banks and building societies offer ultra-cheap loans to existing mortgage customers.
Home owner personal loans are usually secured on your property, which means it's important to make sure you can afford the repayments; unsecured home owner personal loans are also available, but the selection is smaller and interest rates are usually higher. Whether you go for secured or unsecured loans, unless you borrow a massive amount over a considerable length of time you'll usually find that the interest rate is fixed at the time you take out the loan – which means your payments shouldn't increase over the life of the loan.
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