Loans for Homeowners with no equity

No Equity Loans

No equity situations can arise when there is a reduction in your property’s market value. Also for some new homeowners there is no equity in their property as they have taken a 100% mortgage to purchase their property as yet the value of their property has not increased nor has their mortgage reduced due to repayments.

Equity is the difference between the total borrowings secured against your property against the value of that property.

Example:

Your home is worth

The mortgage with your Building Society is for

The difference is your equity in the property

£100,000

£80,000

£20,000

The Bad News First

Most lenders will need to access the equity available within your property for you to qualify for a secured loan. They will have criteria within their loan plans that will only allow you to borrow up to a certain percentage of you property value.

For example

A lender will only allow up to 80% loan to value , meaning the loan they will allow when added to any other borrowings against the property cannot exceed 80% of the property value.

So on a 80% loan to vale plan (LTV)

Your home is worth

The mortgage with your Building Society is for

A 80% plan LTV means your total borrowing against your property cannot exceed

The current mortgage with the Building Society is for

Leaving a loan available to you of

£100,000

£80,000

£80,000

£80,000

£20,000

The Consequence

So if you have no equity as you owe to your mortgage company an amount that is the same as the property value then your options on using your property as security for a loan and consequently getting a better deal are reduced.

What can I do?

Contact Edwards & Associates apply online

Why, what can you do to help me?

The Good News

Provisions have been made to arrange loans for homeowners with little or no equity or even negative equity. We have relationship with lenders who will review your application on case-by-case basis and consider your suitability before making any decisions. These Loans are Unsecured that means they are not secured on your prooperty.

That’s a big difference and could mean a multitude of new options to you the borrower. Further home improvements, consolidate other debt, a holiday and a new car purchase may be realised from one loan.

What do I need to consider?

These types of loans may have on occasion a higher interest rate than perhaps other loans lent on the value of your home as there is a greater risk in the lenders eyes. You should always be clear about the terms of any agreement you enter into.

What do I do now then?

We through our stratigic parners will contact one of our specialist lenders that deal with your personal circumstances to arrange your loan once your completed application form has been received. Just click below on the “apply now” button and you will be contacted shortly thereafter with a decision in principle.

To apply click here

Back to main Secured Loans page

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.
Low rates from 8.8680% APR. The overall cost for comparison is 15.5% APR typical-variable. Over 66% of our customers receive a lower APR than the typical rate shown. Our highest rate is 19.8% APR variable.