who own their own home

A home owner secured loan is a loan that is only available to people who own their own home. This type of loans is secured against your home and is also known as a Secured Loan. Because your home is used as the security against the loan, failure to keep up with your repayments may led to you losing your home. The Advantages of a Home owner Loan Because your own home is used as the security in a homeowner loan you will be able to borrow a lot more money than you would be able to with a personal loan. Personal loans usually allow you to borrow up to 25,000 pounds whereas a homeowner loan can let you borrow a lot more than this. Also as your own home is used as the security for a homeowner loan it means that lenders can often overlook some problems that you may have with your credit history or ability to get a loan from elsewhere. This means that people who are self-employed, have problems proving their income or have a bad credit rating may still be able to get a home owner loan. The Disadvantages of a Home owner Loan The biggest disadvantage of a homeowner loan is that your home is at risk if you do not keep up your repayments on the loan. Therefore you should think very carefully before using your home as security for a loan, and be honest with the lender from the start to ensure that you can realistically keep up with your repayments until the loan is paid off. You need to think long-term when it comes to a homeowner loan as these can sometimes take some years to pay off depending on the amount you are borrowing and the company you are borrowing from. You need to be sure that you are financially stable for the foreseeable future and be prepared to deal with an unforeseen circumstances that may affect your ability to repay the loan. If you are using your home as security for a home owner loan then you need to consider if the purpose for the loan worth risking your home over? Finally, if the homeowner loan is being used to consolidate existing debt, you need to make sure that you have made the necessary plans to ensure that all avenues of the existing debt are controlled to prevent a similar situation from arising again in the future. source---> articlesbase and loanswebsite