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Secured Loans In the UK |
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 It is often essential to raise finance for major purchases including for example house related investments such as adding a conservatory or a loft extension. One method for raising this finance is to borrow money with security put down against the loan. This effectively guarantees the loan by assigning rights to the security in the event of a loan default. Such a loan backed by collateral is usually called a secured loan.
One of the most frequently used assets as security in such an arrangement is a house, or that portion of the equity in a house which is not already granted as security for other loans. This type of loan is usually quicker to arrange and more attractive interest rates are available as it is a safer proposition for the lender. In nearly all circumstances the lender will be able to recover their money. Because of the lesser risk profile of the secured loan it will often be attractive to those with a less than perfect credit history. The secured loan is therefore an option for those with equity tied up in property who are seeking low interest rates or have experienced problems getting an unsecured loan, or for whom an unsecured loan is not otherwise an option.
Secured loans can usually be arranged without punitive fees like those which a standard remortgage will attract. For this reason it is often a preferred route for those seeking to release capital from their real estate investments.
The capital which a secured loan releases can usually be used for any purpose including home improvements, buying a car, take a once in a lifetime holiday, and management or consolidation of other debts. By consolidating many short term debts into one larger long term secured loan the monthly payments to service the debt can be substantially reduced making a significant difference to the month to month finances of the debtor.
Secured Loans are available from high street banks and building societies as well as specialist lenders. |
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How do secured loans work? |
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A secured loan is one that is secured against an asset, usually your home, and these loans can often take longer to process that unsecured loans simply because of the additional information required, such as property valuations and proof of home ownership. However, this type of loan is also the most affordable option for many borrowers and there are a number of factors that can determine how much you will end up repaying on a monthly basis.
You will often find that the interest rates charged on secured loans are very competitive, so you can enjoy real value for money, as lenders can afford to offer lower interest rates because the loan is secured against an asset. You will also find that secured loans are available over a longer term, which can help to keep the monthly repayments down because the overall debt is stretched over a lengthy period. In addition to this, you will also find that your borrowing power is likely to be far higher with a secured loan that with an unsecured loan, and most lenders will base the amount that you can borrow on the available equity in your home, which is the market value of your property minus any mortgage or other loans already secured upon it.
Another great thing about secured loans is that they are suitable for those with a bad credit rating. Providing you are a homeowner, you should be able to find a lender that can provide you with a competitive bad credit loan even if you have a tarnished credit rating, whereas you could find it very difficult or even impossible to get an unsecured loan if you have a poor credit history.
Comparing secured loans is easier than ever these days, as you can simply go online and compare the different loans and rates available. You can then make your decision and even your application online, and in many cases you will receive an instant decision in principle on your loan application.
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UK Secured Loans from GBP 7,500 - GBP 100,000 |
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If youve been thinking about borrowing some money and want more information about UK secured loans, our website explains some of the facts about UK online secured loans and other monetary loans, secured and unsecured.
If youve previously tried to borrow money and been turned down for an unsecured loan, or if you have bad credit history but need to raise a large amount, our low cost secured loans could be the answer.?
We offer fast secured loans of any amount from GBP 7,500 - GBP 100,000 (subject to status) which you can use for any purpose you wish, from a luxury holiday or new car, to debt consolidation or making those long-needed home improvements.
You can choose to pay back the amount you borrow from between 5 and 25 year plans, or any other timeframe in between thats most convenient for you.
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Finance and Loan News:
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