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Compare Home LoansHome loans are provided based on the market value ,mainly estimation given by banks or the registration value of the property. Availing various types of home loans to suit your individual needs at the lowest rates & easy financing can now fulfil the need for a house of your own. Home loan is not a one-time decision; do review the market periodically before availing them. Today there are unlimited number of banks in UK wanting to give out loans. It may seem easy for some to get loan but it is not so easy. Buyers mainly make mistakes while entering into deals, which may not be beneficial for then, so better compare all the variables before signing a loan agreement by different banks. So before finalizing home loan it is must to see all terms and conditions carefully. One can apply for a home loan even before select your property. The loan amount would be sanctioned or approved for you based on your repayment capability.
Features of home loan
Purpose: For purchase of home from builder/resale and construction/extension of existing house.
Loan amount: The amount available usually ranges from $3000 to $50,0000 although some lenders will consider loan of up to $100,000
Security: home loan is a secured loan wherein collateral are required
Loan tenure: Tenure ranges between 3 yrs to 25 yrs
Before availing a home loan these things keep in mind
Eligibility - Banks determine eligibility based on the repayment capacity. The eligibility for taking a loan is augmented by clubbing income of father/spouse/mother/son, by clearing outstanding debts, by stretching loan tenure, Salaried individuals can increase their eligibility by showing therir performance linked income or bonus earned. One can borrow home loan upto 125% of home value.
Interest rates - Banks in UK normally charge fixed and Typical rates for home loan and it may vary from bank to bank, so it is necessary to compare them. And if two banks give same amount of loan but at different interest rates then compare and calculate them and work out which is best. Fixed rates are the rates which remains the same through out the tenure of the loan. fixed rates is good option when the interest rates are expected to move up in the future. But for floating/Typical rates consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. These rates are good if the rates are expected to fall in future.
Insurance cover - Many banks and financial institutions may insists on getting home insured to safeguard their interest.
Other costs - Many banks charge administration fees and processing fees on loan and the amount of these are depend upon the loan amount so it is also considered while taking a home loan. Other fees may bank charge are valuation fees, legal fees but most of them are negotiable.
Processing fees, administration fees, valuation fee, legal fee, is to be paid when you apply for a loan and other fees paid at closing. Many of these fees are negotiable.
Documents required -All deals and offers agreed upon are supported by relevant papers. Business man and salaried require different documents to support the deal. So Before signing the documents recheck all terms and conditions, understand all clauses in the document. Ask for a letter on the bank letterhead mentioning exact rate of interest, Processing fees, pre-payment charges etc.
Penalties - Once you have received the loan do your best to pay it back as quickly as possible. But this early payment might invite pre-payment clause. So it is necessary to check the amount of penalty charged by bank for pre-payment of home loan.
There are lot of banks in UK who give Home loan like Barclays UK. One can borrow $5000 to $100,000(less existing mortgage balance) over 5 to 25 years from this bank and the overall cost of comparison is as low as 6.9% APR. There are many provider or broker in UK who give home loan to the consumer and they act as intermediary between bank and consumer. So it is must to compare these broker and provider other than banks.
Provider/broker
Minimum/
Maximum loan ($s)
Minimum/
Maximum
Term (yrs)
Minimum/
Typical
APR
Percentage
Of home
Loan
Details
24 hour
5000 to125000
5 to 30 yrs
Minimum 7.9% APR and Typical 10.9%
Upto 12% of home value
Home owner loan for every one. fast and easy
e-loan shop.com
3000 to 100,000
3 to 25 yrs
Minimum7.7% and typical 10.9%
N/A
Loan for home owner even for those with no equity in their property
First plus
5000 to 100,000
2 to 10 yrs
7.9% APR
125%
Secured homeowner loan
Guardian credit
3000 to 100,000
3 to 25 yrs
Min 6.9% and typical is 8.9%
125%
Borrow 125% of home value even if turned down by existing lender
Net loans
5000 to 250,000
3 to 25 yrs
Min 6.7%APR and typical is 10.9%
Upto 125% of property value
For home owner only
Ocean finance
3000 to 100,000
3 to 25 yrs
Typical 12.7%APR and rates ranges from 8.9% to 19.9%
Upto 125%
Cheaper loan and nothing to pay upto 6 months
All about loans
3000 to 250,000
3-25yrs
Min 5.9% and typical 9.9% APR
Upto 125%
Employed or self employed home owner
Debt buster loan
5000 to 250,000
5 to 25 yrs
13.6% APR
N/A
Easy and fast
It is not that only provider/broker who give home loan.There are many banks in UK who give home loan i.e. Bank of Scotland, Bank of England, HSBC UK, Bank Of America and there are many building societies who give home loan like Norwich & Peterborough building, Woolwich Building society and many more. There are also Arabic, Asian banks coming in UK to provide home loan to Asians and Arabic people like State bank of India, Bank of India, Bank of Broada, canara bank. So it is easy to take home loan in United Kingdom.
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