Optimum Credit homeowner loans review
Optimum Credit provides second-charge mortgages of £5,000 to £500,000 for homeowners in England, Wales and Scotland.
What's in this review?
Compare Optimum Credit loans
If you borrowed £36,000 over a 13-year term at 8.69% p.a. (variable), you would make 156 monthly payments of £435.16 and pay £67,884.96 overall, which includes interest of £27,289.96, a broker fee of £3,600.00 and a lender fee of £995.00. The overall cost for comparison is 11.6% APRC representative.
What is Optimum Credit?
Since its launch in June 2014, Optimum Credit has advanced funds of over £400 million to homeowners in the UK. Based in Cardiff, it offers a range of variable, fixed and discounted second-charge mortgages to suit your circumstances.
Whether you’re improving your home or consolidating debt, Optimum Credit could help with a homeowner loan. Complete a callback form online at the Optimum Credit website to receive a call from one of its specialist mortgage advisors.
If you’re approved for a homeowner loan directly with Optimum Credit, it will act as a lender not a broker.
What is a second-charge mortgage?
Second-charge mortgages are available to homeowners who already have a (first-charge) mortgage. Just like your existing mortgage, this type of credit is secured against your property. Many second-charge mortgages are taken out when a homeowner wants to re-organise their finances, such as consolidating existing debt into more manageable monthly payments. You should be aware that when consolidating existing credit, this may result in you extending the repayment term of your debt and could increase the total amount you repay. Consider this option carefully before you apply to ensure that it is right for your circumstances.
Key features of an Optimum Credit homeowner loan at a glance
Optimum Credit provides second-charge mortgages to homeowners. This is a type of loan that is secured against your property.
- Borrow £5,000 to £500,000. Optimum Credit will lend up to 95% of the value of your home, less the outstanding mortgage.
- Repay over 3 to 25 years. Your repayment term will depend on your individual needs and circumstances.
- Fixed, discounted or variable rates. Interest rates can be fixed for terms of between 2 and 5 years, and discounts may be available for 12 or 24 months. The rate you are offered will depend on your individual circumstances.
- Security. Your home will be used as security on your loan. Missing repayments will put your home at risk, so always ensure that you can afford the loan you are asking for before you apply.
- Flexible repayments. Optimum Credit allows you to either reduce the term of your second-charge mortgage or reduce your monthly repayments, whichever suits your circumstances best. You may be charged a fee if you settle your loan early in full.
- Set-up fees. Optimum Credit may charge you a fee for taking out a second-charge mortgage. If it requires your home to be valued before making a decision, you will be asked to pay for this.
Am I eligible for an Optimum Credit homeowner loan?
You should only apply for an Optimum Credit homeowner loan if you are certain you can meet the repayment terms, and you meet the following criteria:
- You own your property, with a mortgage. Minimum property values apply depending on the product you choose. If you are a joint property owner, you must become joint borrowers.
- You are employed or self-employed.
- You’re borrowing for acceptable purposes. Optimum Credit will lend for most purposes, including consolidating existing debts, home improvements and large ticket purchases such as a new car. Its lending criteria does not allow it to provide funds for transfer of equity, matrimonial settlements, or for business purposes.
- You have a minimum of £75,000 equity in your home. The maximum that Optimum Credit will lend is up to 95% of your property’s value, less your existing mortgage subject. In certain circumstances a valuation may be required on your property. If this is necessary, there may be additional costs to you to cover this.
How can I apply?
- Fill out the callback form on the Optimum Credit website with some basic personal and contact details.
- A specialist mortgage advisor will call you to discuss your specific requirements before recommending a suitable product.
- A credit check will be performed based on the information you have given and you will be given a quick decision.
Alternatives to second-charge mortgages
A second-charge mortgage is not the only way to access funds that are secured against an asset. You could also consider:
- Car loans. These secured loans can be for new or used cars. You can find car loans from most banks and credit unions, as well as dealerships and standalone car loan lenders. You can usually repay the loan at any time by returning the car.
- Lines of credit. If you’re looking to renovate, invest in property, go on a holiday or buy a new car, you can consider this type of loan. Also called a “home equity” loan, it can be drawn on continually based on the equity held in your property. This is a flexible way to access funds, which could suit you if the amount of credit you need is going to change over time.
- Personal asset secured loans. High-priced assets such as boats, motorbikes and jewellery are accepted by some lenders as a guarantee. Your item or collection of items is valued and then used as security, allowing you to take out the loan you need. You generally won’t find these loans at major banks.
Frequently asked questions
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