Secured Loans Guide
By John Mussi
Secured loans are becoming increasingly popular due to their flexibility.
Basically, a secured loan is one for which you provide some form of
collateral in order to cover the amount borrowed in the loan. A secured loan
is a loan on which you as the borrower have provided the lender some kind of
security for the money borrowed.
With a secured loan, the money that you borrow is secured against all or
some of your assets, specifically an item of property that you can prove
that you own as insurance for the lender against defaults or non-payment of
A secured loan is secured against your home to act as security to the Lender
for the money you have borrowed. A secured loan is often referred to as a
homeowner loan. Secured loans are an ideal solution for homeowners who have
recently been refused a personal loan or for home owners wanting to borrow a
larger loan amount.
It is a bank loan designed exclusively for home owners which uses the net
value of their property as security for the loan. As a result of inflation
and part repayment of mortgages many home owners have a property which is
worth far more than the mortgage they owe on it. A secured loan enables you
to make use of this asset by providing security for your loan, whether you
own a house, flat, bungalow or cottage.
Being a home owner affords you better status in the eyes of lenders. This
makes it possible for home owners to obtain excellent interest rates. A
secured loan usually has a much lower interest rate than an unsecured loan.
You do not even have to have any equity in your property, some lenders will
lend up to 125% of the value of the property.
It also means that you can get a loan if you've had past credit problems
such as CCJ's, are self employed, or have no proof of income. Even if you
have a bad credit history such as CCJ's, mortgage arrears or payment
defaults, you can obtain a secured loan although the rate of interest you
pay will be higher than if you had an unblemished credit history.
A secured loan puts cash in your pocket and is an extremely flexible
facility which enables you to choose the sum you wish to borrow at a
repayment you feel able to manage comfortably.
With a Secured Loan you can borrow from £5,000 to £75,000 with low monthly
repayments. Secured Loans secured on property can be repaid over a period of
between 5 years and 25 years .
Secured loans can be used for any purpose, there are no restrictions. Maybe
you need to reduce your monthly outgoings by paying off all your debts,
leaving you with one lower and more manageable monthly repayment. Or perhaps
you would like to buy a new car, boat or caravan. What about new windows,
conservatory or maybe an extension? It really is up to you.
One of the advantages of secured loans is that they are generally
straightforward and therefore quick to arrange, often within a few weeks. As
the lender is securing the loan against your property as collateral, it
means you don't have to sell up or move house.
In the event that you cannot repay the loan and you default on it, the
lender then has the right to force you to sell this collateral in order to
recover the money that you owe to them. The collateral is usually a house or
You may freely reprint this article provided the author's biography remains
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.
Article Source: http://EzineArticles.com/