Little or no equity
Little or no equity is a problem that many new home owners face. Most UK homeowners have a lot of equity because of the recent
house price boom. If you are a home owner with little or no equity you can still apply for a loan. You can obviously apply for an
unsecured personal loan without question but you can also apply for a secured home loan because there is a handful of home loans
lenders that lend up to 125% of the value of your home (125% equity loan).
Little or no equity loans and lenders
Little or no equity loans can be borrowed for a variety of reasons:-
- debt consolidation
- home improvements
- new car purchase
- new auto purchase
- a holiday
- for business
- a wedding
- divorce or separation or split settlement
The little or no equity loans lenders are quite strict with their criteria. They take security over your house similar to your
mortgage lender but obviously if they are lending 125%, 25% is not physically secured initially and is therefore quite high risk
for a lender.
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Bad credit and no equity
If you have bad credit, depending on whether it is just missed credit card payments, ccjs, defaults or mortgage arrears,
you are unlikely to be offered a 125% loan. You can still apply and lenders will offer you the next best thing available.
Benefits of a 125% loan
There are many benefits of a 125% loan. If for example, you are using the money for debt consolidation you could save
money each month, you could be clearing all sorts of debts into one easy monthly repayment. If for example, you are using the
money for home improvements, you may find that after the improvements have been made your property has increased in value.
If it is for a divorce settlement you may find that you are able to borrow enough to remain in your property rather
than having to sell up.
Apply online
You can apply online here to get some quotes and answers to any questions that you might have about a little or no equity loan.
You are under no obligation to proceed with any loan quotes that you are given. The staff at the companies we can introduce you to are happy
to provide information about low rates, low cost loans and generally help you decide which borrowing options might be the best for you.
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