What Can I Use a Home Equity Loan For?

What Can I Use a Home Equity Loan For?

You can use a home equity loan for almost any purpose.

Home equity loans are loans that are secured against your property. If you have equity in your property you can typically borrow from £3,000 to over £100,000 and spread your repayments over a term up to 25 years.

As your home is offered to the lender as security, the interest rates charged on home equity loans can often be lower than other types of borrowing. This makes home equity loans perfect if you have other high-interest debts which you want to consolidate.

For example, you may have credit cards at interest rates of 15 to 20 per cent, or you may have unsecured loans or bank overdrafts at high rates. You can use a home equity loan to repay all your other debts leaving you with one simple, affordable monthly repayment.

Another popular use for a home equity loan is to undertake home improvements. Home equity loans are perfect if you need to raise a large sum of money to refit or refurbish your house or apartment. Creating additional living space is a good way of adapting your home for a growing family and it will also add value to your property. So, you can use a secured loan to fund a loft, garage or basement conversion or the building of an extension or a conservatory.

Or, alternatively, you may want to improve the interior or exterior of your home. A home equity loan can provide the cash to replace carpets, to redecorate or to fit a new kitchen or bathroom. You can also use the proceeds of a homeowner loan to have your garden landscaped, create an off-road parking space or replace your old windows and doors.

Home equity loans are also perfect if you are looking to raise a large sum of cash for a one-off purchase. Perhaps you need to meet the costs of a wedding or you want to buy a high-value item such as a new car, motorcycle or caravan? Or, maybe you want to use the money to pay for a dream holiday, meet the costs of cosmetic surgery or help your child through university or college.

Whatever you are planning to spend your cash on, if you have equity in your property then a home equity loan could be an easy and affordable way of borrowing the money that you need.

To access the money tied in your home equity and get a great loan rate, book an appointment with the Mortgage Genie.

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