Cheap Secured Loans
Secured Loans are loans that are “secured” on a mortgage or owned property. Your home is used as collateral against the homeowner loan, therefore providing less risk to the lender or financial institution; this effectively means that the amount available for you to borrow can be substantially higher than that of an unsecured loan. Secured loans can be used for any purpose such as debt consolidation, holiday, home improvements or a new car; it is completely up to you what you require the funds for.
Where can I get a cheap secured Loan?
Homeowner loans are available through all high street banks; often an appointment is required to speak to the branch manager. Applying through a licensed finance broker online or direct with internet lenders, often mean that your home loan will be much cheaper as special rates and loan products are set aside for those applying online.
How much can I borrow?
There are a few factors to take into consideration when deciding the amount of a secured loan you can take, firstly how much equity you have available in your home to borrow against and how much you earn; this establishes how much you can afford to pay back each month. Your age is also taken into consideration when taking out the loan; this determines the period of time you can spread the repayments over. Lenders use a term called “Loan to Value”, this basically means the amount you can borrow depends on the value of your home and what percentage they are willing to lend up to - some lenders will lend up to 125%, this is extremely useful should you have negative or very little equity available to borrow against, however the majority of straightforward lenders will allow you to borrow up to 95% loan to value of your property.
I have bad credit will I still qualify for a homeowner loan?
The vast majority of lenders and financial institutions now consider adverse credit applications for those who have a less than perfect credit score/rating. So if you have accrued some adverse credit in the past such as mortgage arrears, secured loan arrears, credit card payment arrears, county court judgements (CCJ’s) defaults and bankruptcy, it shouldn’t be a problem. A large amount of lenders and banks no longer use a credit scoring system when processing secured loan applications, in fact there are now specialised non-conforming loan companies in operation offering all the same incentives as conforming lenders. Secured Loans Rates >>
