UK Homeowner Loans
Who offers the best loans for homeowners?
A wide range of lenders offer UK homeowner loans but there are big differences between different lenders' minimum and maximum amounts. The best buys are all variable rate, too, so your payments may increase if the Bank of England base rate rises.
A large number of lenders offer UK homeowner loans and there are plenty of good products out there, but there are big differences between different lenders' loans. Nationwide offers 6.6% APR for loans of up to 95% of your property's value, and you can borrow for up to 25 years; First Direct lets you borrow for up to 40 years but charges 6.9% and will lend a maximum of 80% of your property's value.
It's worth remembering too that the interest rates for the best UK homeowner loans are all variable, so if interest rates rise then so will your payments. And the figures of 80% of your property's value don't mean the value of your home: they mean your equity – the value of your home minus the outstanding balance of your mortgage. If your house is worth £100,000 and you have £50,000 outstanding on your mortgage, your equity is £50,000, so in the case of First Direct you'll only be able to borrow 80% of that amount: £40,000. Other lenders have a maximum borrowing amount irrespective of your equity, and that figure is usually £25,000.
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