What is a Secured Loan?
A secured loan, also known as a Homeowner Loan, is a loan that is secured against your property. This means that you’re able to borrow larger amounts of money, usually at lower rates. A Homeowner Loan allows you to borrow £20k+ to purchase anything from a car to home improvements. Secured loans are becoming increasingly popular, particularly for those who own their own home and may be struggling with a bad credit rating.
If you have equity in your home and want to borrow upwards of £20,000 then a secured loan could be right for you. The amount you borrow, the term and interest rate, all depend upon the equity you have in your property, your credit history and your personal circumstances.
What can Secured Loans be used for?
A secured loan can be used for anything you like. The only difference between a secured and an unsecured loan is that a Secured Loan is secured against your property. This usually means that you can borrow more at a lower rate. A secured loan is ideal for larger-scale projects such as home improvements, renovations or debt consolidation. You can also use a secured loan for purchasing a new property, or it can be used for early release from a mortgage.
If you’ve got lots of different debts and you’re struggling to keep up with repayments, you can merge them together into one loan to lower your monthly payments. Because a Secured Loan is secured against your property lenders are able to be more lenient when it comes to low credit scores. If you’re thinking of using a secured loan to consolidate debt, our advisers can help.
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We have a dedicated team who deal with Secured loans meaning they have a wealth of experience when it comes to finding a loan for whatever you need. For expert friendly advice, contact us today.