UK HELOC Lenders and Banks
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Are you searching for details about UK home equity lines of credit (HELOC)? You’re not the only one. Each month, over 6,900 people visit our website seeking advice on secured loans.
We know it can be a bit tricky to understand, especially the bit about how they work and the risks involved. But don’t worry; in this easy guide, we’ll explain:
- What a HELOC is.
- The real cost of a bad HELOC deal.
- How a HELOC is different from other types of credit.
- Where you can apply for a HELOC in the UK.
- The process of getting a secured loan.
In the UK, early repayment fees for secured loans have more than doubled since the start of the decade, peaking in 2018.1 We understand that you might be worried about the possible problems of a secured loan. Maybe you’re even in debt.
Whatever your situation, remember you’re not alone — many people are in the same boat. We’re here to give you clear and simple advice.
So, let’s start learning more about UK HELOC lenders and banks together.
Are HELOCs Available in the UK?
HELOCs were developed in the USA, and it has only been in recent years that the same kind of product has been available in the UK.
However, it can be very hard to find a lender that offers a HELOC. Some banks may do, but only to the right borrowers. Put simply, a HELOC is not a mainstream product for banks in the UK at the time this post was published. A bank may be willing to tailor a lending product to you though, but this will depend on your financial situation.
There are a few independent lenders that offer a product that is very similar to a HELOC though.
Where’s the Best Place To Apply?
Currently, the best way to apply for a HELOC is to use one of the independent financial firms that offer this kind of product. Most of these operate a website that has a simple online quote system. Once you have your quote, you can choose to have the lender contact you to discuss matters further. However, do spend some time checking to see if your bank has a similar product available.
In general, HELOC interest rates from a bank are likely to be lower than those offered by independent lenders. You should shop around and find out which lender is prepared to give you the most competitive interest rate and terms for a HELOC or similar type of product.
Lender |
APRC |
Monthly payment |
Total amount repayable |
|---|---|---|---|
| United Trust Bank Ltd | 6.29% |
£219.25 |
£26,310.42 |
| Equifinance | 6.7% |
£219.97 |
£26,395.83 |
| Pepper Money | 6.86% |
£220.24 |
£26,429.17 |
| Together | 7.59% |
£221.51 |
£26,581.25 |
| Selina | 7.79% |
£221.86 |
£26,622.92 |
| Spring | 10.5% |
£226.56 |
£27,187.50 |
| Loan Logics | 11.2% |
£227.78 |
£27,333.33 |
| Evolution | 11.28% |
£227.92 |
£27,350.00 |
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.
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The true cost of a bad HELOC deal
There are no early repayment fees.
Almost every other loan product includes a whooping charge if you want to repay early (they want you paying them as long as possible!).
HELOCs are far more flexible, allowing you to repay early and draw more credit out at will.
Answer the short form below to access the best HELOC rates available.
Can I Get One at Any Bank?
Although HELOCs are becoming more common in the UK, not every bank offers such a product. Whether your bank is willing to offer you a HELOC will depend on which bank you use, and your eligibility for such a financial product.
However, there are a number of independent financial firms that do offer a HELOC, or a product very much like a HELOC. We have listed a few below.
HELOC deals 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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What Banks Are Excluded?
The unfortunate answer here, at the time that this post was published, is that no tier 1 banks in the UK officially offer a HELOC. However, it could well be that the situation has changed by the time you read this post.
Therefore, the best advice is to check with your own bank, and any other high-street bank you feel you would trust to provide a HELOC, to find out if one is on offer, or if a similar product is available.
» TAKE ACTION NOW: Compare deals from the UK’s leading lenders
What Is the HELOC Interest Rate?
HELOC rates are driven by the length of time the HELOC will run for. HELOC rates in the UK often fluctuate as well, depending on the state of the economy. In general, depending on the lender, HELOC rates will be from around 2% to around 10%. Much depends on how much equity you have in your home, how much credit you want, and what your financial situation is.
References
