 Secured Loans
As the above title suggests, a secured loan is secured against your
home as a second charge behind your mortgage lender.
The benefit of a secured loan is that the interest rates are lower than
unsecured forms of credit – because the lender has an interest
in your property which gives him a degree of safety.
With this type of loan it’s not necessary to own your property
outright, just as long as there is sufficient equity to cover the amount
borrowed, although some lenders have been known to advance against negative
equity.
As secured loans give lenders a degree of safety, it also means that
if difficulties were to arise with paying the monthly instalments, a
lender will usually take a long-term view and allow some leeway instead
of taking legal action, knowing that the property is there as collateral,
with some other loan arrangements lenders can be very quick to take legal
action when payments are missed.
This type of loan arrangement also gives you flexibility on the repayment
term. You have the option of spreading your payments from 5-25 years,
in some cases up to 30 years. This means that the monthly payments are
lower, and one of the main differences between a secured and unsecured
loan is the amount you can borrow. With a secured loan, lenders are prepared
to lend money up to the value of £250,000, sometime more.
One of the other major benefits of considering this type of loan, is
that your credit history, income and employment status are not major
factors when it comes to lenders accepting your application. What is
more important when approving your loan is the available equity and the
ability to meet the repayments.
Secured loans give many tens of thousands of people the opportunity
to borrow money, people who may be turned down by more traditional providers
and sources of funding.
There are hundreds of secured loan products available, catering for
people from all walks of life and all situations, including interest
only.
Be sure to take advice from a regulated mortgage advisor.
If you would like us to arrange for someone to talk to you about a loan
or a way of raising funds, then please click
here to fill out our request form.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR
HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A/YOUR MORTGAGE
OR ANY OTHER DEBTS SECURED ON IT.
|
