Friday, November 24, 2006

ArticleBlaster Top-up Loans Advice

====================================================================

Author Name: Peter Kenny
Contact Email Address: peter@creditcards-gb.co.uk
WebSite: http://www.thriftyscot.co.uk/Loans/
Category: Finance, Business, Marketing, ECommerce, Advertising
Description: If you have a mortgage and are in of more money to help you pay off debts or finance home improvements, then you should consider getting a top-up loan
Keywords: Personal loans,uk,secured,loans,debt,consolidation,compare,apruk,visa,mastercard
Word Count: 551

====================================================================
Article Content:


If you have a mortgage and are in of more money to help you pay off debts or finance home improvements, then you should consider getting a top-up loan. A top-up loan can help you to put your finances back on track without having to pay vast amounts of interest. If you are unsure about top-up loans and how they can help you, then here is some information to help with your decision.

What are top-up loans?

If you have a mortgage loan, then it is likely you can apply for a top-up loan. A top-up loan is in essence a loan given to you at the same rate as your mortgage. It is not a remortgage, but rather a ‘top-up’ of the amount you borrowed. This amount can be used for a variety of purposes, including debt consolidation or home improvements.

How much can I borrow?

The amount you can borrow varies depending on the value of your property and how long you have been paying back your mortgage. If you have been repaying your mortgage for less than one year, it is unlikely that you will be eligible for a top up loan. Usually after one year of repayments you can borrow an amount around 10-20% of your mortgage value, and then after two years this might go up to 30%. A top-up loan of 30% is often the highest you can possibly get.

You can borrow more for less

The primary advantage of a top-up loan is that you can borrow more money than you would be able to with an unsecured loan, but at a much lower cost. You will only be paying the same interest rate as that of your mortgage, meaning your repayments will remain low. If you need to borrow a large amount of cash, then a top-up loan is one of the cheapest ways to do this.

No tax benefits

Although the interest rate is low like a mortgage, the loan is treated as a personal one, and therefore does not have the same tax benefits as a mortgage. There are no tax benefits on the interest of a top-up loan, so you cannot save money this way as you could with a remortgage. However, a top-up loan does not have the same costs associated with a remortgage, so it is cheaper and quicker to set up.

Risking your home

Although top-up loans are treated like personal loans in terms of tax, they are still secured using your mortgage and home, and so there is a chance you will lose your home if you do not keep up with repayments. Make sure you can keep up with the repayments even when times are tough, and only borrow what you really need.

Are top-up loans worthwhile?

Top-up loans are very worthwhile for homeowners who want to borrow a large amount of cash at a low price without having to remortgage. They are especially good for home improvements, as you can make back the cost of the loan by adding to your property value. However, if you are looking to borrow a smaller amount over a shorter time, then getting a personal loan might be cheaper and less risky.

====================================================================
Author Biography:


Peter Kenny is a writer for The Thrifty Scot, please visit us at <a href="http://www.loanwize.co.uk">Poor Credit Loans</a> and <a href="http://www.thriftyscot.co.uk/Loans/">Loan</a>
Visit http://www.thriftyscot.co.uk/

====================================================================

*** Digital Reprint Rights ***

* You are not allowed to change anything in Article Content and Author Biography except the format for displaying the article properly.

* You are allowed to use this article for free as long as it will not violate any laws.

* I will appreciate it if you can notify me the publication of this article. I can be reached at peter@creditcards-gb.co.uk.

__._,_.___
Recent Activity
Visit Your Group
SPONSORED LINKS
Yahoo! HotJobs

Be Discovered!

Employers find you

Upload your resume

Drive Traffic

Sponsored Search

can help increase

your site traffic.

Search Ads

Get new customers.

List your web site

in Yahoo! Search.

.

__,_._,___

No comments: