🚛 Can You Use Home Equity to Buy a Horse Float?
Yes! If you own a home with available equity, you can use it to finance a horse float by:
✅ Taking out a home equity loan (lump sum borrowing)
✅ Using a line of credit (flexible borrowing as needed)
✅ Refinancing your mortgage to access extra funds
✅ Combining equity with other financing options
💡 Tip: A home equity loan often has lower interest rates than traditional horse float loans.
🏦 How This Buyer Used Home Equity to Purchase a Horse Float
A 48-year-old horse owner wanted to buy a premium horse float but preferred a lower interest rate than a personal loan. They successfully used their home equity by:
| 🔑 Strategy | ✅ How It Helped |
|---|---|
| 📑 Applying for a home equity loan | Borrowed against their home at a low 5% interest rate |
| 🚛 Choosing a line of credit | Allowed flexible repayments without a fixed loan term |
| 💰 Keeping repayments low | Used mortgage-level interest rates to reduce costs |
| 📆 Paying off the loan early | Took advantage of lower rates to clear the debt faster |
💡 Tip: A line of credit allows you to borrow only what you need, reducing interest costs.
📋 Pros & Cons of Using Home Equity for a Horse Float
Before tapping into home equity, weigh the benefits and risks:
| 🔑 Factor | ✅ Pros | ❌ Cons |
|---|---|---|
| 📑 Lower Interest Rates | Home loans have lower rates than personal loans | Uses home as collateral, increasing risk |
| 🚛 Flexible Loan Terms | Can spread repayments over 10-30 years | Longer terms may mean more interest paid over time |
| 💰 Higher Borrowing Power | Can access larger loan amounts | Not ideal for small loans (better for high-value floats) |
| 📆 Tax Deductibility (for Business Use) | Possible tax benefits if float is for business | No tax benefits for personal-use floats |
💡 Tip: If you only need a small amount, a horse float loan might be cheaper than borrowing against your home.
🏆 Best Home Equity Loan Options for Horse Float Finance
Lenders offer different ways to use home equity depending on your needs.
| 🔑 Loan Type | ✅ Best For | 📉 Interest Rate (Typical) |
|---|---|---|
| 🚛 Home Equity Loan | Borrowers wanting a lump sum for a float purchase | 5–8% p.a.* |
| 💰 Line of Credit | Buyers wanting flexible, ongoing borrowing | 5–8% p.a.* (variable) |
| 📆 Mortgage Refinance | Homeowners wanting to restructure existing loans | 4–7% p.a.* |
| 📉 Secured Personal Loan | Borrowers needing a smaller loan | 6–12% p.a.* |
💡 Tip: A secured personal loan might be better for lower-cost horse floats instead of using home equity.
(*Rates vary based on lender and credit profile.)
💳 Why a Finance Broker Can Help with Home Equity Loans
A finance broker can:
✅ Compare home equity vs horse float loan options
✅ Find low-rate lenders that offer flexible repayment terms
✅ Help determine if home equity is the best choice for your situation
🔑 Final Thoughts
Using home equity for horse float finance can offer lower interest rates and higher borrowing power, but it also ties your loan to your home. If you’re considering this option, compare it with secured personal loans to find the best deal.
🚀 Thinking of using home equity for a horse float? Get expert finance advice today!
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
