Homeowner Loan Direct Lenders – Complete Review

Are you a homeowner thinking about getting a loan? Or maybe you already have one, and you’re not sure how it works?

No need to worry; you’re not alone. Every month, over 6,900 people visit our website to understand secured loans better.

In this simple guide, we’ll explain:

• What a homeowner loan is and how it works.
• The benefits and risks of getting a homeowner loan.
• How to find out if a company is a direct lender.
• What to do if you have a bad credit history.
• Whether a homeowner loan can be written off.

Being in debt can be tough – we know how it feels, and we’re here to help. We’ll give you clear and honest advice to help you make the best choice.

So, let’s start learning about homeowner loans together.

Should I get a homeowner loan with a direct lender?

Secured loans and homeowner loans may be advertised with direct and indirect lenders. So, should you get a direct lender homeowner loan or an indirect lender homeowner loan? Judging on what was mentioned above, not using a direct lender could end up costing you more money – but not always. 

Getting any secured loan through a comparison website, credit broker or indirect lender might mean having to pay a broker fee and charges, sometimes even ongoing commission. Even if you don’t, the direct lender might have put their loan interest rate and other fees up as a result of having to pay the indirect lender themselves. This generally means using a direct lender is advantageous.

However, you should search the whole of the market for secured loans before making a decision. 

Are homeowner loans easy to get?

It’s not possible to say whether homeowner loans are easy or difficult to get on the whole. On the one hand, they are a type of secured loan so they may be easier to get approved for than some unsecured loans, especially if you have a poor credit history. But on the other hand, you’re likely to already have an existing mortgage to pay at the same time, and thus your debt to income ratio will be higher. 

Each lender applies its own affordability checks based on the amount you want to borrow and your planned repayment term. If they believe you won’t be able to keep up repayments without causing financial hardship then they could reject your secured homeowner loan application. 

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How do I know if the company is a direct lender?

There are different ways to tell if the company you are considering for a secured loan is a direct lender or not. Within the small print of their website, you should be able to find details of how the credit is provided. More often than not, direct lenders will want to advertise themselves as such, so you may find they state this within their website content, often within FAQ pages. If the lender is a big bank or renowned loan provider, there’s a good chance they are a direct lender. 

But if you haven’t heard of them before you should dig a little deeper – or simply ask them on a call. If they try to avoid the question or don’t answer it clearly, they probably aren’t direct lenders of secured loans. 

Homeowner loans for all purposes

• Stuck paying high interest on credit card debts & loans?
• Looking to fund a home improvement project?
• Dreaming of finally taking the once-in-a-lifetime trip?

Polly

“This was by far possibly one of the nicest experiences I’ve had getting a secured loan.”

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Is Evolution Money a direct lender?

Evolution Money is a UK credit broker and not a direct lender. The small print on their website says they will pass your details to other credit brokers if they cannot find you a loan. This is just one example of a company that could easily be perceived as a direct lender, when in fact they are not. 

Homeowner loans with direct lenders

If you would prefer to use a direct lender to take out a homeowner loan, the safest option is to use one of the high-street UK banks, such as Lloyds, Halifax, Santander and many others. These banks are certainly direct lenders. But remember, just because you avoid some unnecessary fees doesn’t mean they will always be the cheapest. Take your time to complete meticulous research. 

Moreover, remember that any representative rates are not always what you’re offered if approved. These rates are what just over half of applicants were provided at best. The other half of applicants could have received lower or higher rates, but it’s more likely to be the latter.