The UK’s housing proximity comprises 27.8Mn residences. This sector has come through various stages in the course. It has brought about fruitful occurrences and years of distress to the homeowners all this while.
Since 1980, the greatest increase in housing prices was seen in 1988 and the highest decrease in these rates was seen in 2009 (post to the 2008 financial meltdown).
All this affects the loan industry substantially, the higher the price of your equity, the more amount of funds you can obtain with its help. The unsecured loan industry is no different to these changes.
Housing prices in the UK are on the higher end and they continue to grow. An average UK property value is 4.5% higher than the previous year. It may be bad for the new buyers and the sellers to make these transactions, but the loan industry can surely benefit from this.
This article talks about the effects of this situation on a homeowner loan. How it will help the cause and things you should keep in mind before obtaining these funds.
In the second half of this year, banks in the UK became more reluctant in providing mortgage lending to the consumers and this phenomenon is expected to continue till the upcoming years as well.
In such times, an unsecured homeowner loan proved more helpful to the citizens of Britain. Subsequently, its demand increased as the banks marginalised re-mortgaging and financing based upon collaterals and guarantors.
In the subsequent times, the Banks in the UK stayed away from unsecured lendings as well, making a void in the market for such things.
Many independent and regulated lenders and brokers came ahead to provide these funds to the masses, one such name is 786 Loans in the UK. It is a loan brokerage service authorised by the FCA, helping homeowners who are struggling for a loan in the UK.
A homeowner loan is a great utility these days. With the high property rates and increasing equity prices in Britain, your property is a great source of availing finances in this country. You will not have to put up your home as a collateral with a homeowner loan, but it only contributes to the assessment of your application.
On the other hand, there are various benefits to a homeowner loan. They can be helpful in sorting the debts at hand, during a financial emergency that you face, or for any type of fund requirement, you may have.
A detailed explanation of these amenities is stated below.
• Debt consolidation:
A homeowner loan can be really helpful in the various vectors of financial requirement. But I think the best aspect of this loan or the most impacting way to use these funds is to consolidate your ongoing debts and instalments. You can club your financial outflow into one consolidated amount, which is accounted for affordability and is apt as per your repayment schedule as well.
• Improve your bad credit score:
Taking out this loan and its timely repayment can help you improve your credit score and for the bad credit profiles, it’s a blessing in disguise. As you advance with your payments on time, it enhances and improves your credit score. However, in the case of a late payment or partial payment of an instalment, your credit score position can degrade further.
• Improve your home and lifestyle:
These loans when taken for improving home bring along more goodness and well-being to your lifestyle. You can avail these funds more conveniently and affordably than most of the secured counterparts of this loan, and in return, they aggregate your lifestyle and your living space to the desired lengths and standards of living. Such things increase the equity value of the property you spend it on. So in a way, it’s a win-win situation for you in most of its attributes.
• Handle the untimely financial needs:
When you face a sudden need of funds or an untimely financial crisis comes upon, these loans hold your hands. They provide easy finances to you with less hassle and least damage to your profile. When obtained via FCA regulated brokers like 786 Loans in the UK, the broker checks your eligibility with a soft credit check. These checks do not leave a footprint in your credit books and do not hamper the situation any further (however, a mandatory hard credit check is still imposed by the lender, while finalising the loan to you).
So these loans have proved their value and the usefulness to the various citizens of Britain. With brokers like 786 Loans, they are even available in the doorstep loans format, commonly known as “door-to-door loans” as well. Making the process to be more convenient than anything else in the genre.
It’s a much-needed utility for the homeowners in the UK and a successful future is anticipated for it. A homeowner loan with a loan broker like 786 Loans is the need of the hour for the homeowners. From adding more comfort to your lifestyle, to the financial concerns you may face. Its various uses and utilities can heal the many wounds caused by recent financial miseries bestowed upon the citizens of Britain.