RemortgagingĪnother option is to release equity in your home by remortgaging. However, the amount you can borrow will usually be a lot less compared to a home equity loan or HELOC and interest rates can be higher. Again, you borrow a lump sum that must be repaid in fixed monthly instalments over a set term. Personal loansĪ personal loan does not need to be secured against your property, which means you can borrow funds without owning a home. The downside is that you’ll need to have a good idea of how much you need to borrow – if you need more funds, you’ll need to take out another loan. The advantage of this is that your payments are fixed, which can help if you’re on a budget. You then repay that amount, plus interest, over a set term in monthly instalments. However, rather than receiving funds as a line of credit as you do with a HELOC, you receive a lump sum. Home equity loansĪ home equity loan is a secured loan, which means you can borrow money against the equity in your property. If you’re not sure if a HELOC is the right choice for you, there are alternative options to consider. On top of this, you may have to meet certain income requirements and you will need a good credit score. Some providers will also ask that your property meets a particular value threshold. If you have little to no equity in your home, you’re unlikely to get accepted for a HELOC. To be eligible for a HELOC, you will need to be a homeowner and you will need to have sufficient equity in your property.
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