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Secured Loans 24 Hours a Day
Secured loans, also known as home personal loans, second
charge loans or homeowner loans are secured on your property
by the lender as 'collateral' in the event of a default.
This means that the lender has a lower risk of losing any
money and can, as a result, offer a secured loan at a lower
APR (Annual Percentage Rate) than an unsecured loan, which
gives the lender less security. As a homeowner, it is just
one of the ways you can use the equity in your property
to raise finance in the form of a secured loan.
The advantages of secured loans
A secured loan has several advantages compared to an unsecured
loan. Firstly, a secured loan is easier to obtain, even
if you have an adverse or bad credit history. Mortgage arrears,
payment defaults, even CCJs won't necessarily stop you from
getting a secured loan or homeowner loan, although the terms,
particularly the interest rate, will reflect your financial
history and present circumstances. By the same token, if
you have a good credit history, many lenders will offer
secured loans of more than the equity in the property, sometimes
up to 125%, so if your home hasn't increased in value as
much as you had hoped, or a remortgage isn't practical,
a secured loan could offer you the best deal.
Moreover, a secured loan can be quick and straightforward
to arrange. Because you can keep your existing mortgage
in place and you don't need to sell your home or move house
and the security is assured, a secured loan can be arranged
in just a few weeks and there tend to be fewer upfront charges,
such as legal and survey fees and mortgage indemnity guarantees,
on a secured loan.
What could you do with a secured loan?
Another benefit of a secured loan is that you can use the
money for any purpose you choose. You can consolidate or
reschedule other debts to make your repayments your manageable,
you can pay off store or credit cards, improve your home
or simply use your cash buying power to negotiate the best
deals on something like a new car or holiday of a lifetime.
Still have a question?
Take a look at our Secured
Loans FAQ
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