Borrow money while using your home or property as collateral. Rates of interest for secured loans are usually lower as compared to unsecured loans because of the collateral involved.
These loans are also known as “homeowner loans” as they allow you to borrow money against your property. If you need a large sum of money and you have a poor credit report, you may consider taking out a secured loan.
However, you should understand the risks associated with a secured loan before borrowing. When you apply for a secured loan, the lender will ask you to offer your home as collateral. If you fail to repay the loan on time, the lender has the right to possess your property and resell it for loan recovery amount.
As you put your home as security, lenders consider you as a less risky borrower. For this reason, the rates of interest on these loans are comparatively lower. Secured loans allow you to access a large sum of money and as the process is completely online, it will not take much time for you to get the required funds.
If you are struggling to get access to money and you do not own an asset or property, there are various other financing options that you may consider. A secured loan is the best option for those people who need a large sum of money, who own a property and who can afford to repay all the repayments on time to avoid repossession of their property.
We have answered almost every question related to secured loan that are frequently asked. If you do not find something, please contact us.
Lenders offer a lower interest rate on secured loans because they have the security of your property if you do not repay the debt. This means they are happier to reduce the interest rate because there is less risk for the lender.
When we become partners with a lender, one of the first things they do is to send us a list of the types of borrowers they would like to work with. You might be just the type of borrower one lender is looking for but another might not consider you. Our job is to pair you with the right lenders based on the information you give us.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54