Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.
Homeowners looking to make home improvements or renovations to their property will often consider remortgaging at a higher loan-to-value (LTV) to release some of the equity in their home to pay for the work. But, with mortgage lenders withdrawing high LTV products from the market in response to the economic uncertainty caused by the Coronavirus pandemic, this option may not be as easily available as before.
Our research has found that there are currently 283 remortgage deals available at an 85% LTV or higher. Of these, 236 are available at an 85% LTV, 38 at a 90% LTV, and just nine at a 95% LTV. In contrast, those looking to remortgage at an 80% LTV have 381 deals to choose from. As a result, those at an 85% LTV and who are looking to borrow additional money when remortgaging could struggle to get a deal and may want to consider a secured loan instead.
A secured loan, sometimes referred to as a second mortgage, is a type of loan that requires the borrower to put security, usually their home, against the loan. While this means that consumers can borrow higher amounts of money compared to a personal loan, usually £20,000 or more, it also comes with the risk of the borrower losing their home if repayments are not met. Saying this, for consumers who are confident they can meet repayments, secured loans can be a way of borrowing a significant amount of money without needing to remortgage.
Currently, the lowest rate available in the secured loan chart is 5.8% APRC, which is available from Paragon Personal Finance. But, as with other forms of borrowing, the rate offered depends on the borrower’s credit score. In addition to this, the secured loan deal available will depend on the amount of equity a homeowner has in their property.
As with remortgage deals, there are more secured loan deals available at a lower LTV, but homeowners with just 5% equity in their home can still get a secured loan. Clearly Loans, for example, offers secured loans for homeowners with 90% and 95% LTVs. A full list of the current secured loan deals available can be found on our secured loan chart.
As already mentioned, homeowners looking to borrow additional money when remortgaging at a high LTV may struggle to do so in the current economic climate, however a secured loan may be an alternative option. As well as this, for homeowners in the middle of a fixed term mortgage deal, remortgaging may not be an option at the moment, so a secured loan could enable them to borrow money without paying exit fees on their current mortgage deal.
Before taking out a secured loan, however, consumers should be aware of the risks involved and that if repayments are not kept, they could lose their home. Secured loans should only be considered by consumers who are confident that they will be able to meet the repayments over the term of the loan, which can last from one year to 25 years depending on the type of deal and option chosen. Borrowers should also be aware that the rates on secured loans are significantly higher than current mortgage and personal loan rates.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
In an attempt to combat the rising cost of living, homeowners are increasingly looking for ways to lower their energy costs – and one option that’s growing in popularity is installing an air source heat pump. But could it be worth considering?
Homeowners are increasingly looking for ways to lower their energy costs – one option that’s growing in popularity is installing an air source heat pump.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to the latest research. In particular, loan rates have fallen on small sums – on a borrowing amount of £3,000 over a three-year repayment period, the average loan rate is down from 14.6% a year ago to 14.3% today. A recent survey from Direct Line revealed 50% of consumers they surveyed wanted to renovate to gain extra space. Loft conversions can be a popular way to maximise living space, and insulation can cost £2,750, according to research by estate and letting agents Barrows and Forrester.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to the latest research.
If you are looking to give your garden a complete makeover this holiday it could cost you between £5,000 and £10,000, according to Checkatrade, a directory for tradespeople. This cost is based on a “transformational project”, which typically requires more work than just restyling a specific area of your garden. It is also based on a project for a large rear garden of 100 metres squared.
If you are looking to give your garden a complete makeover this holiday it could cost you between £5,000 and £10,000, according to Checkatrade.
In an attempt to combat the rising cost of living, homeowners are increasingly looking for ways to lower their energy costs – and one option that’s growing in popularity is installing an air source heat pump. But could it be worth considering?
Homeowners are increasingly looking for ways to lower their energy costs – one option that’s growing in popularity is installing an air source heat pump.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to the latest research. In particular, loan rates have fallen on small sums – on a borrowing amount of £3,000 over a three-year repayment period, the average loan rate is down from 14.6% a year ago to 14.3% today. A recent survey from Direct Line revealed 50% of consumers they surveyed wanted to renovate to gain extra space. Loft conversions can be a popular way to maximise living space, and insulation can cost £2,750, according to research by estate and letting agents Barrows and Forrester.
Borrowers looking to make home improvements will find the average cost of an unsecured personal loan has fallen year-on-year, according to the latest research.
If you are looking to give your garden a complete makeover this holiday it could cost you between £5,000 and £10,000, according to Checkatrade, a directory for tradespeople. This cost is based on a “transformational project”, which typically requires more work than just restyling a specific area of your garden. It is also based on a project for a large rear garden of 100 metres squared.
If you are looking to give your garden a complete makeover this holiday it could cost you between £5,000 and £10,000, according to Checkatrade.
Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.
I accept. Read our Cookie Policy