Equity Home Loans
Equity home loan advice
As with all financial arrangements it is vital that you fully understand how an equity home loan could affect you. The Financial Services Authority (FSA) suggests that before you consider taking out an equity home loan that you consult an independent financial adviser.
Our fully independent financial advisers have a great deal of experience of this product and can advise if this is the best option for you. As we are not tied to any specific lender we have the ability to search the entire that market to recommend the home equity release scheme that best fits your needs. If you are interested in finding out more about home equity release schemes, please contact us.
What is an equity home loan?
As home equity loan is sometimes abbreviated to (HEL). This is a type of loan in which the equity in the home is used to provide a loan using the house as collateral. The amount received can be as a lump sum or an equity line of credit which provides the facility to draw down up to a maximum agreed point. There are therefore three main types of home equity loan:
- Standard home equity loans
- Home equity line of credit loan
- Home equity hybrid loan
Standard home equity loans
With standard home equity loans the loan is provided as a single lump sum. This sum is repaid at a fixed point in time. This type of loan is often taken to cover large financial commitments such as major repairs.
Home equity line of credit loan
With this loan the total amount can be accessed in a number of instalments. These instalments must not exceed the maximum value of the agreed loan. Interest is paid on the amount borrowed rather than the maximum amount of loan available.
Home equity hybrid loan
With a home equity hybrid loan the loan begins life as a as a fixed interest loan over a fixed period of time. After this period the loan is converted to a variable interest loan.
The advantages of home equity loans
Equity home loans allow the borrower to borrow large amounts of money at fairly low interest rates using their home as collateral. In addition these loans are tax deductable. If you wish to discuss an equity home loan with one of our independent financial advisers please contact us.
Free equity home loan consultation
Our financial advisers will discuss the options provided by equity home loans to allow you to come to a decision as to whether a loan is right for you. To arrange your free consultation please >click here