All Forum Posts by: Deep Mukherjee

Hey Everyone and thank you for reading my post.

I am looking to find an unsecured, revolving line of credit in the UK.

In the USA, this product is called a Line of Credit (LOC) and the most popular ones are offered by Credit Unions (smaller community banks).

In the USA, a LOC:
1. Is a revolving line of credit - use it, pay it back, repeat.
2. It is usually simple interest, or a low interest rate if not simple interest.
3. Assume I have a LOC for 5k. I would be able to draw out 3K at the beginning of (say) Feb. At the end of Feb, draw out another 2K (to pay for March's expenses), then take my entire paycheck received on Mar 1st (say 3k) and move that entire amount into the LOC, as a "payment" (that is, by clicking the "Make a Payment" button in my LOC account and moving the 3K paycheck from my checking account at another bank, into the LOC).

4.Repeat above

If anyone can please point me at lenders who may offer this product or one like it in the UK, I'd appreciate it.

Thank you,

Deep

Hey Everyone and thank you for reading my post; I appreciate it.

I am looking to find the UK equivalent of a HELOC (a Home Equity Line of Credit in the USA). The behavior of the product in the USA is described below.

In the USA, a HELOC:
1. Allows you to access 75% of your home's equity. (Say you bought a 100K home with 20k down, paid down the 80k mortgage by 10k and the home appreciated by 20k. Your total equity would then be: 20k +10k +20k = 50k. The maximum amount of the HELOC would be 75 % of this amount so: 37.5k).
2. It is simple interest only (since it is secured by the home). So if I drew 10K from the HELOC at 3.75% *simple interest*, the *annual* interest would be 10k times 3.75/100 = $375. My monthly interest would be 375/12 = $31.25
3. Once I paid back the 10K, I would be able to draw it back out again, repeatedly (revolving line of credit just like a credit card)
4. I would be able to make interest-only payments on my outstanding balance
5. I would be able to draw money from the HELOC for 10 years. (I could also make payments back into it)
6. After 10 years, I would no longer be able to draw money, but would have 15 years to pay back the balance

If you could please point me to similar products and lender's names in the UK, I would truly appreciate it!

Thank you,Deep