Equity Loans

If you have equity in your home or buy-to-let property, then maybe you could use this to secure borrowing for any purpose. Secured loans are available from £10,000 with flexible terms to suit your budget. My Sort of Loan customers have used their equity to fund home improvements, debt consolidation, to help family members and much more.

My Sort of Loan will provide a free, no obligation quotation from one of our qualified advisers – so call one of our team on 0800 159 018 or 0330 053 6001 (mobile friendly) to discuss further. Alternatively, enquire online using our short contact form – but do not worry, there is no credit search when you submit this form.


Calculating Your Equity

My Sort of Loan specialise in all aspects of secured lending and have access to plans up to 95% loan to value. Secured lending allows our clients to unlock the equity in their homes to raise funds for any purpose. These come in a variety of plans, such as equity release, second mortgages, further advances, and remortgages.

How to calculate how much equity you have in your property:

Property valuation minus your existing mortgage balance = equity

For example:
Property Value - £200,000
Mortgage outstanding - £125,000
Equity at 95% = £65,000


Advantages Of UK Homeowner Equity Loans

  • Because the loan is secured on your property, you can use the funds for any purpose, including home improvements, debt consolidation, car purchase, weddings and more.

  • My Sort of Loan can secure the finance on either your residential home or any buy-to-let properties (criteria permitting).

  • Secured lending at My Sort of Loan allows longer terms and larger loan sizes compared to unsecured loans. With terms between 36–360 months, and loans from £10,000 upwards, we have lenders and plans to suit your budget and circumstances.

  • Depending on which secured option you proceed with, your existing mortgage can stay where it is and the secured loan sit behind this, or we can remortgage your existing account and increase the borrowing to release the extra funds. Our experienced and qualified advisers will be able to guide and recommend the best solution for you.


Alternatives To A Secured Loan

Remortgaging With New Or Existing Mortgage Provider
The main benefit of remortgaging is it may offer a low interest rate for all your borrowing requirements. If you would like to discuss this option, we work alongside independent mortgage advisers who will not only review your current interest rate but will quote for any additional borrowing you require. They will also check for any ERCs (early redemption charges) with your current provider to ensure this is the best option for you.

Equity Release Plans
There are many plans which fall under the ‘Equity release’ option, including lifetime mortgages and retirement interest only mortgages. To qualify for this mortgage, you would have to be over the age of 55 and have equity in your property. The pros and cons of an equity release mortgage are:

  • Tax-free cash – You can take a lump sum in one go or can use a drawdown facility to take smaller lump sums when required. You only pay interest on the amount you use.

  • Spend it how you want – You can use for almost any reason, however most of our clients use the funds for clearing existing debts or mortgages, to fund home improvements or to help their children and grandchildren get on to the property ladder.

  • Nothing to repay – Unless you choose otherwise, there’s nothing to pay until you die or move to permanent residential care.

  • Stay in your home – Moving house can be stressful, especially if it’s been the family home for a long time and you have friends nearby, so with this type of lending, you don’t have to downsize.

  • You can still move property if you wish – if the new property is acceptable, you can still move house.

  • Inheritance protection – leaving money to your beneficiaries is an important part of planning your estate. With most of our plans, you can choose to protect a percentage of your equity to leave in your estate.

  • No negative equity guarantee – all our plans are managed by the Equity Release Council and FCA and will guarantee that you will never end up in negative equity.

  • Reduced Inheritance – If you choose to roll up the monthly interest repayments, even with the inheritance protection, taking a lifetime mortgage is likely to reduce how much you can leave your beneficiaries.

  • The interest could build up quickly – If you choose not to repay any interest repayments, the interest could rapidly build up. There may be cheaper ways to borrow money.

  • Inheritance Tax – If you gift the money, they MAY need to pay inheritance tax in the future.

  • It could affect your benefit entitlement – Should you use the lifetime mortgage as a source of income, this could affect any means-tested benefits later.

  • Early Repayment Charge – If you choose you pay off your lifetime mortgage within the first few years, you will be charged an early redemption charge.


Here at My Sort of Loan:

1. You will receive independent and experienced advice from qualified advisers who will have access to some of the best plans on the market.

2. We are regulated by the Financial Conduct Authority (FCA) and all recommended plans are FCA regulated.

3. All our advisers are registered with the Equity Release Council and all recommended plans follow their guidelines. So, you are in safe hands!


Key Criteria For Equity Loan Lenders

  • Think about how much money you would need to satisfy all your financial requirements. If you are looking to clear existing debts with this loan, make a list of the items you would be looking to clear, the current monthly repayments you are paying, and decide how much you could comfortably afford with the secured loan. If you are looking for the loan to fund home improvements, obtain quotes for work and add a contingency amount.

  • Consider the value of the equity of your property by deducting your current mortgage outstanding from the valuation of the property. For secured loans (second mortgages),we have lenders who can lend up to 95% of the equity, whereas with Equity release products, this is based on your age and health.

  • The next step is to speak to one of our experienced secured lending advisors on 0800 0159 295 or 0330 0536001 (mobile friendly) – alternatively, please complete the short online form and we will call you back at your convenience.

  • At My Sort of Loan, we only conduct soft footprint credit searches, which has no impact on your credit status. We will only conduct the credit search once we have your consent to do so and cannot be seen by anyone else except you. It’s also worth remembering that we have access to exclusive products which cannot be applied for direct with the lender. At My Sort of Loan, we can provide a free, no obligation quotation for most circumstances.


Are There Any Upfront Fees To Pay?

You will not be charged any upfront fees for our services, even if you decide to cancel your application before the loan completes. However, we charge a broker fee on completion which can be paid upfront or added to the loan (should you choose to add this to the loan amount, you will pay interest on both the capital and the fee amount).


What Interest Rates Can I Obtain For My Equity Loan?

At My Sort of Loan, we have access to hundreds of plans from our panel of lenders, with some rates being exclusive to us. The rate is dependant on how much equity you have, your credit and employment status and affordability. Once we have decided which product would be right for you, you will receive an ‘advice and recommendations’ document to show how we have come to this conclusion and will include your personal mortgage illustration.

Additional Tips

  • Before you borrow make sure that a loan using your equity is really what you want? Remember as with a first charge mortgage your home is at risk home if you find you can`t repay the loan for whatever reason.

  • Don`t over stretch yourself. The lender will always look at your income and affordability as part of a proper and sensible lending process, you should also work out what you think you can afford each month. This will allow you to understand how much you can afford to borrow and what loan term to use to keep payments affordable on the amount of money you would like.

  • Review and consider if you have sufficient suitable insurances in place to cover the equity loan if something happens. Although the lender doesn`t insist life cover is in place, you may want to make sure your dependants are covered if the worst happens.