Home & Mortgage
What is a Secured Loan?
by: John Mussi
A secured loan is simply a loan that uses your home as security against the loan. Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime.
Benefits of secured loans include:
- Lower monthly repayments than unsecured loans
- The ability to borrow more money
- Spread repayments over a longer period of time
More detailed information.
A secured loan is a type of loan available to people with securable assets. Usually these assets take the form of property, such as a home; this is why secured loans are often referred to as homeowner loans, home loans, secured personal loans or second charge loans.
You do not have to own your own home outright to be able to take out a secured loan; if you have a mortgage you can put the proportion of the home that you own up as security.
Because a secured loan is secured on property, most lenders will approve your loan even if you have a history of adverse credit such as county court judgements (C.C.Js), defaults and arrears.This make secured loans very attractive to people who would otherwise not qualify for a loan from their local bank.
You can borrow any amount from 5,000 to 75,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances. Generally, secured loans tend to be cheaper than unsecured loans and other forms of borrowing.
The interest rate for a secured loan depends upon various factors such as the amount of money you borrow, the length of time and personal details. You can also insure your payments for peace of mind, so you do not have to worry if you lose your job or are unable to work because of accident or sickness.
Secured loans are arranged through leading financial institutions so you can be assured of a professional and responsible service such as, National Banks and Finance Houses like First National Bank, Black Horse Finance, Welcome Finance, iGroup amongst others.
Once your secured loan application has been processed and accepted you will be made a no obligation offer. It usually takes around 14 days for a secured personal loan to be completed and you can cancel any time within this period with no penalties.
This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans.
Benefits of a Secured Loan
The secured loan is favoured by many UK residents seeking credit for a number of reasons:
- A secured loan is far easier to obtain than unsecured loans. The added security that this type of loan gives the lender means that even those with a less than perfect credit history can get hold of a secured loan with relative ease.
- A secured loan is often offered with more favourable terms than other types of loans. With secured loans it is also far more likely that you will be able to borrow a larger amount of money and pay it back over a longer period of time.
- A secured loan can help you to free up equity that would otherwise remain dormant in your property, letting you make use of capital that would otherwise remain unobtainable.
- The interest rates on secured loans are often considerably lower than those offered on unsecured loans.
- A secured loan will enable you to get your hands on money that would otherwise take a long time to save up, allowing you the freedom to spend it on whatever you want.
- A secured loan can be used for any purpose such as; paying off debts, making home improvements, buying a new car, luxury holiday or anything you choose!
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This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online secured loan via the http://www.directonlineloans.co.uk website. To find a loan that best suits your needs visit http://www.directonlineloans.co.uk
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