| Home owners in the UK have access to another | | | | When you begin the application process, it is |
| source of funds that they may not have known | | | | important to discus your options with your loan |
| about or considered. It's called a home equity loan | | | | officer because each company has many different |
| and it can be used for emergency medical bills, paying | | | | loan programs and some may be more appropriate |
| off credit card debt, vacations, home repairs or just | | | | for your needs than others. They should take the |
| about anything else you need. This can be a valuable | | | | time to explain exactly what terms they are offering |
| tool in your overall financial strategy provided that | | | | you as well as any other relevant information about |
| you understand what it is and how it works. | | | | the loan. You should also receive documentation on |
| A home equity loan uses your home as collateral and | | | | the loan to go over prior to actually endorsing the |
| allows you to borrow up to 100% of the value of | | | | final loan. |
| your home - for example, if your home is worth | | | | As a home owner, you have one more tool to help in |
| £100,000 and you currently owe £40,000 | | | | managing your finances. Now you don't have to |
| then you would be able to borrow up to | | | | worry what you will do when unexpected expenses |
| £60,000. The interest rate for your loan is | | | | come up because you know that you have an |
| based on your credit history and the length of the | | | | option. So if you're ready to get your credit card |
| loan can range from 5 to 25 years. You need to be | | | | debt under control, make some home repairs or take |
| aware that there may be fees and taxes associated | | | | a vacation, now is the time to look into a home |
| with a home equity loan, depending on your | | | | equity loan. |
| circumstances and location. | | | | |