Types of Loans


This is designed to facilitate the financing of the building of a new house. This would require an adequate deposit, or equity in the land which is being built on. The lender would generally require the borrower to have a fixed price contract with the builder and a valuation based on the plans.  Once the house is complete the loan will be placed on a normal repayment basis.



This enables the borrower to purchase a property when they are waiting for settlement for a home.  It is normally required for a short-term period. Often these loans are provided by finance companies, rather than main banks.



This is aimed at the retired market and enables borrowing against your property.  The funds can be received as a lump sum or a series of payments. The amount available is likely to be relatively small compared to the value of your property and is repaid when the property is sold, or on death. The interest rate would be higher than a normal home loan but enables retired home owners to use some of the equity in their house as cash.



This works like a large overdraft.  Interest is charged to the account and the balance must remain within its credit limit.  It is subject to interest rate fluctuations, usually the floating/variable interest rate.

Gareth Jenkins