Secured Loans Explained...As the name suggests, Secured Loans are only available to homeowners who can secure the loan against their property. Raising funds against the value of your home gives you access to far larger sums of money than are normally available with unsecured loans. Secured Loans are also referred to as Home Loans, Homeowner Loans and Mortgage Loans.
The amount available to borrow with secured loans can vary and could be anywhere between £3,000 and £500,000. Secured loan repayment terms can also vary from 3 to 30 years, with the most common being 10, 15 and 25 year terms.
The actual amount you can borrow with secured loans depends on how much equity you have in your home. For example, if your property is worth £250,000 and your outstanding mortgage is £180,000, you have £70,000 equity. If you have a considerable amount of equity in your property, you may be better off remortgaging as opposed to taking out a secured loan.
Some secured loan companies offer loans up to 125% of the value of your property, effectively allowing homeowners with negative equity borrow money.
Some lenders specialise in bad credit secured loans. The rates on such loans can be higher than if you were a good credit risk. The is also normally the case for secured loans on houses with negative equity. As a general rule, however, a secured loan normally offers lower interest rates than an unsecured loan.
Important: remember that you are offering your home as security for the loan.
By Steve Larnder-Smith
Financial Writer
Why Choose Norton Finance? |
|
Borrow £5,000 to £1,000,000 |
|
Borrow over 3 to 25 years |
|
Simple, fast and straight forward |
|
Free yourself from unwanted debts |
Please note that calls may be monitored or recorded for training purposes.
On some plans a fee of up to 12.5% may be charged.
|
