Secured Loans
What is a secured loan?
A secured loan is a loan that is secured against a financially rich asset, typically a property. Typically secured loans are only available to homeowners who have sufficient equity in their home to repay both any mortgage and any loan secured on it. The advantage of this type of loan is that the typical repayments will be lower than on an unsecured loan, and that the repayment time can be anything from 3 to 25 years.
As secured loans offer less risk to the lender they are also available to those who have experienced credit problems in the past. The obvious reason for this is that should you default on your secured loan the lender has the right to re-possess your property.
Secured loans are available from a wide variety of lenders and are available for a wide variety purposes from business financing, home improvements and motor vehicle finance.
Appling for a secured loan
Applying for a secured loan is getting easier these days, with the Internet becoming used more and more as a research tool, financial institutions are becoming more accessible. An internet search will generate literally hundreds of different secured loan lenders and brokers where you are able to compare the loan deals and make an educated decision. Many of these companies are able to give an 'immediate decision in principle' to secured loans.
What needs to be borne in mind is that secured loans take longer to process than unsecured ones. House price valuations, proof of home ownership and existing secured lending on the property will all have an effect on the availability of a secured loan.
