Getting a Secured Loan

The secured loan is favoured by many seeking credit for a number of reasons. Listed below are some of the benefits of a secured loan:

A Secured Loan is a loan that a lender provides on the understanding that a property is secured against the loan. This type of loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments.

A Secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that anyone taking out a secured loan is effectively using their property to guarantee the loan. If the borrower fails with the repayments, there could be a possibility their home is at risk.

Secured or home-owner loans are made available for many different purposes, and amounts. The amount is normally from £5,000 up to £75,000 some lenders will however consider lending more. The loan is usually repaid monthly over an agreed term. The term of the loan is normally from five years up to twenty five years depending on your circumstances and how much you can afford as your monthly payment.

The primary advantages of a secured loan are that:

Because the loan is secured and the lender is guaranteed to recover their money in almost any circumstance the APR (the interest rate) tends to be less than with an unsecured loan.

The circumstances in which one is able to secure a loan on property are more dependent upon the equity in the property rather than past credit history and hence individuals with adverse credit histories (such as County Court Judgements and credit card defaults) are not excluded from secured lending.

A secured loan represents an efficient debt management tool because it is possible to spread payments to a term of up to 25 years, it is therefore possible to consolidate any existing borrowing and reduce the monthly outgoings to such an extent that considerable extra income is made available to the household budget.

The majority of secured loans carry can be arranged without fees therefore the secured loan often represents a cheaper lending option than a remortgage due to the fees usually associated with the remortgage product.

- 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!

Apply for a secured loan now