Secured loan and the equity on my home

Helen1941

Hey guys, im considering applying for a secured loan and am slightly confused on the matter of the equity on my home and my eligibilty.

Back in 1998 when we first moved into our new property we were granted a £90000 mortgage. We then decided to pay off 99% of the outstanding mortgage amount left in 2005, after selling our old property in 2004.

I now currently have an outstanding mortgage amount of around £264.00, while my property value is estimated at £225,000.

Forgive me if these are relatively silly questions to answer. My husband used to take care of this stuff, so this is new territory for me.

1. With the information i have given above, does this allow me good equity on my home for an acceptance for a secured loan?
2. How would a lender for a secured loan, regard me having an outstanding mortgage amount of £264.00 only. Would it affect my acceptance? From what ive read, when applying for a secured loan, holding a mortgage is a requirement. Even though i do hold a mortgage, could the small outstanding balance i have on my mortgage, hinder me somehow from being accepted?

Ive read most information i can about secured loans, and these are two questions that come into my mind from the information ive gathered.

Again sorry for what may be silly questions to what is routine knowledge to most.

Tubbss

Hi

You have almost 100% equity, the only issue may be the balance on the mortgage. Some secured lenders will not lend if they will have the 1st charge on a property.

Rather than going for a secured loan with another company would it not be easier to release equity with your existing mortgage company?