Home Equity – Finance your future with your equity

Homeowners across the UK have seen equity levels in their properties rise – even skyrocketed – in recent years. However, your equity is of little use to you if you do not sell your property, otherwise it is tied up in your house and cannot be used. However, a home equity loan allows you to use your equity without having to sell your home and move on, allowing you to free up the money tied up in your home and use it to fund your future, rather than just sitting on it and struggling together financially.

With a home equity loan, you can use your equity to fund your future, from using the money to pay for further education to improve your career prospects, to fund your dream wedding, the trip of a lifetime, and more. Whatever your plans for the future, there’s a good chance you’ll need some form of financing to make them happen, and this is where a home equity loan can really help.

When you take out a home equity loan, you can borrow against the equity tied up in your home. You can easily find out how much equity you have in your property by finding the market value of your home and then subtracting any outstanding mortgage or secured loan balances. The number you are left with is your equity. Some lenders allow you to borrow up to the full amount of your equity, while others may only allow you to borrow a percentage of your equity. Some even allow you to borrow beyond your equity,

When you take out a home equity loan, you have an increased chance of getting the financing you need, which has become especially important in the current financial environment where lending conditions are very stringent. Lenders have become increasingly suspicious when it comes to handing out unsecured financing, but with home equity loans, the lender has more security and therefore the risk to the lender is reduced. For the borrower, this means a better chance of getting the financing they need at an affordable rate.

Homeowners should be aware that their equity is a very valuable asset that could allow them to raise the financing they will need in the future. With a choice of lenders offering home equity loans, you won’t be short of choices when it comes to finding the right loan for your needs, and as a homeowner, you can enjoy reputable interest rates that make your loan more affordable.