Northern Rock Loans
A home may be a dream and a vision for some. Buying a house is almost like an achievement. Houses can also fulfill our money needs at times. That is through the personal secured loans available from some companies.
Many companies in the United Kingdom provide loans to customers who own a home. These loans are called personal secured loans. Northern Rock provides these personal secured loans on the equity of the homes only to their customers. As is always a secured loan allows you to spread the repayments over a longer period than an unsecured personal loan.
Northern Rock provides secured loans from amounts starting from £3,000. These loans have an APR of 10.3%. The period of the loan range from five years to thirty five years. The total amount that can be borrowed is calculated by adding the current mortgage balance along with the new secured loan. This can be anywhere up to 95% of the value of the property.
Interest for the loans is calculated according to the type of Mortgage that the property currently has. If the mortgage is flexible then the flexibility spill over to the secured loan as well. That is you can underpay or overpay and even make payment holidays if the same is available in the mortgage of the property.
So if the property is under mortgage, what are the types of mortgage that allows the customer to take the secured loans? Any customer who has a Lifetime or Buy to let mortgage on the property is free to take a secured loan.
Like all other finance companies Northern Rocks secured loans do have some unique features one of them is the express service. If the customer’s need for money is very urgent they can avail express service by which the loan funds are transferred to the customer’s account the same day the loan is approved. The charge for this facility is just £35 which is added along with the interest charged. It may also be paid separately.
Repayments for the loan amounts can be done through two methods repayment loan and interest only loan. The repayment loan the customer pays of the principal plus the interest. Whereas in interest only loan the customer needs to pay only the interest charges and the principal is saved into an investment instrument and repaid at the end of the loan’s term. These Northern Rocks loans also come with payment protection insurance that protects the repayments in case of loss of job or redundancy.
The customer may be very happy to know that your home can fetch you more cash at times of need and lend a help at these crucial times. But he has to make sure that the repayment are done for the mortgage as well as the secured loans without fail. Otherwise there is a probability that the house may be repossessed for not paying off the loans. Secured loans have their own advantages and disadvantages and Northern Rocks tries to provide their best with their secured loans to homeowners.
