Building a home in the UK is a revered dream for at least two-third of millennial population. According to estimates as much as 80 percent of Baby Boomers own homes in the UK and most of them do not intend to sell it either! The generation following the Boomers—the one born between 1985 and 2004 is exponentially slower to buy houses. The cause is not unwillingness to owe but the capacity to own the home.
The rising cost of property and slackening wage growth are the reasons for the same. Herein we reach to another underlying trouble touching the homeowners struggling to repay mortgages while meeting the cost of living in the UK. Be it a replacement heater, or small home repair or purchase of car, it could be hard to think of an additional loan despite your elevated loan instalments and credit bills.
How to avail additional funds with current mortgage?
With high debt to income ratio, raising additional loan online should only be considered if another cheaper option is not left. Many people fail to realise the burden of loans till it mounts up to inconsolable proportions.
One of the affordable ways to raise funds for home improvement could be applying for online Homeowner Loans UK. You can contact a loan broker and they can share affordable instalment loans as a second charge on your home.
Despite the current mortgage the loan would be extended against the available home equity owned by you. Your home equity would be used as loan security and thus the loan is swiftly approved. The rate of loan is cheaper than bad credit loans raised as unsecured or no guarantor loans.
In case you do not intend to apply for secured homeowner loan, still your application would be preferred to those who live on rent. People with assets are always considered as more reliable for loans and this is one of the major reasons why we buy properties on our name.
Hassle free ways to repay home loans fast
Those who say they do not know the art of saving are basically undermining the concept of saving itself. Saving is not an obligation; it must be part of your growing up. If you could recall, you must have heard your grandparents or parents citing the importance of saving as a habit.
Here are quick takeaways (to save) for those who are struggling to keep pace with their loan obligations:
Rent/ Share your Home
UK is one of the largest destinations for students and families vying to migrate for better lifestyle. There is always a high demand for residential rentals here. By renting a part or single room of your home you can make additional income for years. In fact it can fund your loan repayments substantially. It has no cost, other than maintaining the condition of your property.
Build a reserve Fund
Building a reserve fund should not be an option but a practice you should follow irrespective of your credit health. Even if you save a few hundred every month it would make a big difference on wet days of your life. If you haven’t ever built a reserve fund before, begin saving now.
This is an art that serves well when you learn it to mend your bad credit rating. Some of the simple tricks could be minimizing intake of coffee, alcohol and cigarette; reducing fine dining; shopping on lists and alike. You can also replace car trips by bicycle rides and save extensively on fuel costs.
Last but not the least, you can consider contacting an FCA authorised loan brokers for professional advice. They are not the loan sellers but loan advisers. You can compare the available choice and make a well informed decision with the broking help.