The Strain Debt can have on a Family
Author: Advanced Finance Total views: 8 Word Count: 378
Now we are in the twenty first century, a lot more people are borrowing more than they would have 10 years ago.
With the amount of credit cards, and unsecured loans on offer, it is easy to borrow in excess of £40,000, just as a tenant, or living with your parents, with no property as security. If you are a homeowner however, it is much worse. People who own their own home are able to borrow up to 125% of the value of their home on a homeowner loan.
That works out on a house worth £300,000 at a secured loan borrowing of £375,000 then also the £40,000 or more in unsecured debt too. Bearing in mind, the average family who owns a property of £300,000 has about £56,000 total family income. That is almost 7.5 times the family income, including the £40,000 in unsecured credit too. I know that there are mortgage lenders that will lend 10 times a person’s income at the moment. Now that is credit strain!
If you are a homeowner and are tied into a fixed rate mortgage, with some equity in your property, and you have outstanding homeowner loans, and visa cards, and store cards, it might be a good idea to tie them all up into a secured loan, where you can consolidate them into one simple monthly payment, that is easy to manage.
A homeowner loan that is secured on the property is normally much cheaper than that of an unsecured loan, because the lender has the property in which you live in for security over the loan, and normally there is more equity than there is debt. However, some lenders do go as far as lending 125% of the value of the property.
When looking for secured loans, it is worth looking around on the internet, or even asking a homeowner loan broker to arrange the loan for you. Secured loan brokers deal in all types of loans, from unsecured tenant loans, to secured loans, or even bridging loans too. If you need to contact a secured loan company, Advanced Finance are one of the largest secured loan brokers in the UK, and operate online, so no matter where you are in the UK, they can arrange the finance that you are looking for.
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About the Author
Jenny Austin is an expert in bridging finance, as well as secured homeowner loans and secured loans
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