A secured loan is a personal loan which is generally offered to home owners. In a typical secured loan, the home is used as collateral against the loan, meaning that should you be unable to maintain the loan repayments, your home will be at risk.
A secured loan is a loan made with an asset, often your home, used as security against default on repayments. When you apply for a loan from a lender they look to see if you have any security that you can offer that will make the risk of lending you money less of an issue.
Secured loans are where you agree to offer the lender security over your home. This means that the lender has the right to take ownership of this asset if you fail to make the loan repayments that are due under your agreement.
This security will generally be your home even if you still have a mortgage on the property. This security basically makes a lender feel better about your ability to repay your loan. You put your security up as a guarantee to the lender so that if you fail to make repayments they have a secured fall-back and can get their money back.
The fact that you have this security to offer a lender minimises the risk they take lending you the cash. They know they have a guarantee of getting their money back whatever happens so you'll get the best interest rates available in the market for a secured loan.
Before a lender will make a loan offer they are likely to consider a number of factors including your gross household income, past credit history and any adverse instances of mortgage arrears, defaults and county court judgements.
Secured loans are available today from a variety of lenders at a variety of interest rates. In taking out a secured loan you are effectively releasing capital that would otherwise have remained tied up in your property.
The majority of homeowners who take out loans will choose a secured loan option simply because it will be cheaper than unsecured loans.
Secured loans vary from lender to lender. Normally, though, they will range from just £5,000 to as much as £75,000. Repayment periods can be anything from five to twenty five years.
If you are a homeowner arranging a secured loan can clear your debts, create some funds for home improvements or you could use it for buying a new car or taking the holiday of a lifetime.
Secured loans may be suitable for you if you are considering debt consolidation. Normally, the lender can offer a large reduction in the repayments required from you by simply bringing together all your outstanding debt and replacing it with one new secured loan. The reduction in your monthly payments can be achieved by arranging for the new secured loan to be repaid over a longer timescale or at a reduced interest rate or both.
Being self-employed or having a b ad credit rating does not have to be a barrier to qualifying for secured loans.
Secured loans have several advantages, including the fact that they are available fast and online. It is now possible to apply online for secured loans. This is a very simple and fast process. It can be done from the convenience of your own home, at a time that is convenient for you. Secured loans can now also be arranged without the need of a face-to-face meeting.
Using your house as collateral means your house may be at risk if you can not meet your personal loan repayments.
It is strongly recommend you consider protecting your loan payments with a Payment Protection Plan. A Payment Protection Plan is designed to give peace of mind because no matter how healthy you feel today, nobody knows what lies round the corner tomorrow.
A Payment Protection Plan is a small additional insurance payment that you make each month. This extra payment will be included with your loan repayment. This small sum will ensure that if you lost your job, became ill, or unexpectedly pass away your loan repayments will be paid for you.
A secured loan is a quick and convenient way to plug a short term financial need, for example, to go on holiday or extend or improve your home. In essence, a secured loan enables homeowners to unlock some extra cash by using their greatest asset - their home.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
E-Book Writing Formats: How to Make the Words Flow There are several e-book formats you can write to that are thought-provoking enough to get your words flowing, and flexible enough to make them as long or short...
6 Reasons Why Using Flash is a BIG Mistake Don't let your web designer fool you into having an all flash site. Learn why you could be throwing money away by using flash.
Getting Connected Once you get the hang of it, you'll have a wonderful way to start your day. You'll also learn eventually how to "re-connect" throughout your day --- take little...
What is a Free Traffic Exchange? For any serious webmaster of affiliate marketer, you know traffic is everything. Free traffic exchange sites are the most cost effective way to generate targete...
Cash Loans: Are They Worth the Cost? It is a fact that sometimes, money is tight. Everyone will be in this situation at some stage in their life. They are in urgent need of funds to avoid bouncing ...
More Ways to Deal With Acne The "cures" for acne vary dependant on the type and severity of acne. The truth is, there is currently no cure for acne, only treatments. Some people have succe...
Is Your Email Address Blacklisted? A lady emailed me yesterday very upset over the fact that her friend's Internet Service Provider (ISP) wasn't delivering important email messages. This lack o...
Ancient Secret for Weight Loss A look at weight loss from 3000 B.C. Some of the weight loss and health benefits from the past are available today. Do you want to know what the are?
Investing In Real Estate In New York City New York Looking at investing in real estate? You have many options, including investing in land only, investing in waterfront property, or investing in residential or c...
Flowering Cherries A guide to one of spring's wonders - the flowering cherries.
Pay Per Click Advertising the Sandbox and SEO Most new websites jumpstart their traffic with a pay per click advertising campaign, especially new sites that fall victim to the Google "sandbox". Before I go...
Bleed now is not the time to open
open that great door again
not the time to be more tolerant
not the time to play to win
Using Traffic Exchange Programs Part 2 In the last series, I have asked you to join as many Traffic Exchange programs as possible. If you have not then do it now! In this sequel, I will show you how ...
Interior Design For Children Interior design for children is one of the most fun, delightful aspects of the business if you ask me. It is so fun because children are limitless as far as the...
Give People Something to Talk About! Being able to carry on a conversation is an art form. And being able to hold conversations at work about topics other than work is a gift. If you want to increa...
No Prosecutors Should Ever Hold Office It has become apparent in hindsight that those politicians who have previously been prosecutors should never hold office. They often have a negative skewed view...
Hot Wedding Trend: Platinum Wedding Rings In our hungry-for-anything new pop culture world, celebrities are often the ones that can start a hot fashion trend seemingly overnight. With their heavy media ...
Print this page