An equity loan is a mortgage placed on real estate in exchange for cash to the borrower. It is also called a secured loan or Home owner secured loan. For example, if a person owns a home worth £100,000, they may take an equity loan at 80% loan to value (LTV) or £80,000 in cash in exchange for a title placed by the lender of the equity loan (the secured loan). Many lending institutions require the borrower to repay only an interest component of the loan each month (calculated daily, and compounded to the secured loan once each month). The borrower (homeowner) can apply any surplus funds to the outstanding loan principal at any time, reducing the amount of interest calculated from that day onwards. Some secured loan products also allow the possibility to redraw cash up to the original LTV, potentially perpetuating the life of the secured loan beyond the original loan term. The rate of interest applied to equity loans is much lower than that applied to unsecured loans, such as credit card debt.

A NEMO LOAN IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Calls may be monitored or recorded for training and security purposes. A Nemo Loan is secured on your home and is for homeowners with a mortgage only. All loans are subject to status. Repaying borrowing over a longer term will increase overall interest charges. Nemo Personal Finance is authorised and regulated by the Financial Services Authority for arranging and advising upon general insurance. Registered in England and Wales No. 5188059. Registered office: Principality Buildings Queen Street Cardiff CF10 1UA

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