Home Equity Loan Refinancing - UK Online Guide

Home equity loan refinancing can be an excellent way of gaining extra income, by utilizing the equity you have built up in your UK property over the years. Despite the obvious benefits, you need to be completely sure of what you are agreeing to, so make an appointment with an independent financial adviser before you take out the loan and make sure you understand exactly what you are doing.

What do I need to ask before refinancing with a home equity loan?

No doubt there will be hundreds of questions you'll want to ask, but here are a few of the more basic queries you should consider discussing before you sign on the dotted line:

1. What is the minimum age requirement?

2. Is there a minimum property value requirement?

3. Will I have to cover arrangement fees and legal costs?

4. Will the loan be paid as a lump sum or in regular instalments?

5. If the loan is paid in instalments, will my income payments increase in line with inflation?

6. Is the interest rate fixed or variable?

7. Can I remain in the property for as long as I wish?

8. Are there any financial penalties if I move house?

9. Are there any financial penalties if I move into sheltered accommodation?

10. If I marry, will my spouse be able to live in the property when I die?

11. How will the loan affect my tax contributions and/or state benefits?

12. What if the amount owed becomes greater than the equity in the property?

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