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Prestige Finance homeowner loans review

Prestige Finance offers secured loans of up to £2.5 million to UK homeowners, repayable over 3 to 25 years.

Prestige Finance does not lend directly to its customers, so you will need to apply through one of its registered brokers. Bear in mind that the broker will receive a fee from Prestige Finance for its services. Always compare lenders to ensure you are getting the most affordable deal for your circumstances before you go ahead.

Established in the mid-1980s, Prestige Finance is the UK’s longest-running second-charge mortgage provider. Formerly known as Sheldon and Stern, the company was rebranded as Prestige Finance in 2002. It was bought by specialist mortgage provider OneSavings Bank, in 2012.

Whether you’re consolidating debt or paying for a wedding, Prestige Finance could help with a homeowner loan – also known as a “second-charge mortgage” – of up to £2.5 million. It’s straightforward to apply online for a Prestige Finance loan by using one of its brokers.

What is a second-charge mortgage?

A second-charge mortgage is a type of loan that’s secured against your home, in the same way as your original mortgage. You’ll want to think carefully before taking out a second-charge mortgage, as your property will be at risk if you don’t keep up repayments.

Key features of a Prestige Finance homeowner loan at a glance

  • Borrow up to £2.5 million. Prestige Finance allows you to borrow up to 90% of the value of your property, less the outstanding mortgage. The lower the percentage you borrow, the better your interest rate is likely to be. The amount you can borrow will also depend on your credit score.
  • Repay over 3 to 25 years. Your repayment term will depend on your individual needs and circumstances.
  • Variable or fixed rates. You can choose to fix your interest rate for a set term to help you budget.
  • Interest-only option.If you are a buy-to-let owner, you can choose for your monthly repayments to only cover the interest on the loan. The loan itself is repaid at the end of its term from the proceeds of sale of the property, or you will need to have another means of repaying it.
  • Lender fee.Prestige Finance will charge you a one-off fee when you take out your loan. This figure will be set out in your loan agreement. If a property valuation is needed, you will also be charged for this. There will be a further one-off fee if you are borrowing as a buy-to-let owner.
  • Security. Your home will be used as security on your loan. Missing repayments will put your property at risk, so always ensure that you can afford the loan you are asking for before you apply.
  • Overpayments. You can pay more than your set monthly repayments, up to a certain amount, without incurring a charge.
  • Poor credit ratings considered. Prestige Finance may still be able to lend to you if you have a less-than-perfect credit score. However, your interest rate will be higher than for customers with a good credit history.

Am I eligible for a Prestige Finance homeowner loan?

    You should only apply for a Prestige Finance homeowner loan if you are certain you can meet the repayment terms. You must also meet the following criteria:
  • Over 21 years old. And you mustn’t be older than 85 at the end of your loan term
  • Resident in England, Wales or Scotland
  • Have a minimum of 3 years’ address history
  • Homeowner or buy-to-let owner
  • Have a first-charge mortgage on your home

Prestige Finance states that these loans should not be used for business, transfer of equity, investment or financial speculation, for bridging or to install solar panels.

How can I apply?

To obtain a Prestige Finance homeowner loan, you will need to apply through one of its intermediaries. These include Fluent Money, Enterprise Finance and Freedom Finance.

Alternative sources of funding

Before taking out a homeowner loan, you should consider all of your options carefully. Other ways of gaining funds secured against your home or an asset include:

    • 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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