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Can I get a secured loan even if I have little or no equity in my property?
A secured loan is a type of loan that is only available to homeowners, and this is because this type of loan is secured against the home.
For many homeowners a secured loan is the most effective and affordable option when it comes to borrowing. The amount that you can borrow will depend on a number of factors, including the levels of equity in your home.
Some things to remember when it comes to secured loans is:
- Some lenders will only let you borrow up to a certain percentage of the equity in your property.
- Some lenders will allow you to borrow the full amount of the equity in your property.
- There are lenders that offer loans of up to 125% of the equity in your property, which is ideal for those with little or no equity in their home.
Working out whether you can take out a homeowner loan
When it comes to secured loans for homeowners the lending criteria between lenders can vary, and this includes the amount that the homeowner is allowed to borrow.
If you have little or no equity in your home, borrowing levels can prove to be a problem – as the amount you can borrow is determined by the amount of equity you have available.
Luckily there are lenders that cater for this situation, and these lenders offer loans of up to 125% of the equity levels in your property, which means that even if you have little or no equity in your home you may be able to borrow the money that you need.
How much equity do I have?
To work out the equity in your home you need to find out the market value of your property and deduct any outstanding mortgage or other loans that are already secured on it.
If you have plenty of equity in your home then you can enjoy more choice when it comes to lenders, as you can go to those that only offer up to a percentage of the equity in your home as well as those that offer up to the full amount of the equity in your home.
However, if you only have a little equity or none at all, then your best bet is to look for a lender that specializes in secured loans of up to 125% of the equity.
Always remember that any secured loan is secured against your home, even if you do not have any equity in your home, and therefore you should always ensure that you can comfortably afford the repayments on the loan.
Compare secured loans and look for the  icons and roll over to find out how much of your property’s value each lender will allow you to borrow.
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