A secured personal loan is the generic term for a loan. Essentially, a secured personal loan is one that is secured against your property.
It is a low interest loan designed exclusively for homeowners. What this means is that, by taking out a secured loan, you are using your house to guarantee the loan repayments. A Secured Personal Loan enables you to make use of this asset which will provide security for your loan.
Secured personal loans are the best loans for homeowners, of course there is a greater risk attached to this loan as the home is put up as a collateral. The home is under risk if the repayments are not paid duly. If you continually fail to make repayments on a secured loan, you could be putting your house at risk.
Because the risk is lower for the lender than on an unsecured loan it is possible to get better interest rates than on a loan that is not secured on a property. This is also the reason that lenders are able to offer higher sums than for unsecured loans.
So, why do people take out secured personal loans? Well, firstly you may want to borrow money in order to increase your home's value by making improvements to your home. Others may take on a debt consolidation loan, which means that you take on a large loan for a long period, which pays, off your other loans and credit cards and you end up paying a smaller monthly payment than you were paying with all of your other loans together.
Many people choose secured loans as opposed to unsecured loans because the interest rate is often lower. Typically secured loans are offered at low interest rates, as the risk taken on by the loan company is less.
The application process is a lot longer with secured loans than with unsecured loans, due to the fact that your loan provider will need to value your home.
However, it is easier for you to be approved for a secured loan because you are using your home as security. It is very likely that your loan is far smaller than the value of your home, so the loan provider will view it as less of a risk.
With a secured personal loan you can borrow from £5,000 to £75,000 with low monthly repayments. Loans secured on property can be repaid over a period of between 5 years and 25 years .
A Secured Personal Loan has the following advantages:
Offers a flexible and fast way of raising cash
Loans are available for most purposes including clearing other expensive credit commitments
Since your property is used as security for the loan you will be able to take advantage of the special interest rates available
There are usually no valuation or legal fees to pay
Choice of sum borrowed at a monthly repayment you feel able to manage comfortably
Loans are available over a relatively short term
You may freely reprint this article provided the author's biography remains intact:
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.
A payday advance is a loan obtained to cover unexpected... Read More
Here is a useful guide to the bad credit personal... Read More
You've got your eye on that shiny new Lexus -... Read More
Like most of the contingencies (the after effects of unemployment... Read More
Whether you have good credit, bad credit or no credit,... Read More
If you don't know where to turn for bad credit... Read More
What is a Secured Loan?A secured loan is any loan... Read More
Here is a useful guide to fast secured loans. Here... Read More
Refinancing your loan is one of the best kept secrets... Read More
If you have been injured in an accident it is... Read More
Often in our search for finance options, we are led... Read More
If you considering using a Cash Advance Payday Loan service... Read More
The usual modus operandi in most automobile purchases is as... Read More
Military loans are overcoming financial difficulties for army personnel who... Read More
The day you stop learning is the day when you... Read More
The opportunity to spend money is everywhere. There is no... Read More
Did you know that if you have a home that... Read More
Payday loans are loans of a small amount, taken for... Read More
The phrase 'tailor-made' ought to be made for personal loans.... Read More
If you're searching for an adverse credit homeowner loan, you... Read More
Many banks actively encourage their clients with low balances to... Read More
A Bad Credit loan is a personal loan for people... Read More
Unemployment is generally supplemented with several other vices like poverty... Read More
There are a number of different loan products available today,... Read More
In this second installment, we will further examine what kinds... Read More
Payday loan qualifications are different from other types of short-term... Read More
Online cash advance companies offer a convenient and speedy application... Read More
Bad credit is like an ongoing battle for many loan... Read More
Refinancing your car loan is an ideal way to lower... Read More
Payday loan companies gives the borrower the amount of the... Read More
Living in the United Kingdom, you might find yourself in... Read More
Agriculture loan guaranteesFor better understanding of the agricultural loan guarantee... Read More
"All work and no play makes jack a dull boy".The... Read More
What are the opportune times to avail of military payday... Read More
You can get a payday advance with cheap rates and... Read More
Free Auto Loan TipsThe following tips should help increase your... Read More
If you're just beginning to look at online loans, you... Read More
Trying to find good UK secured homeowner loans might seem... Read More
Emergency - the word is written everywhere in red and... Read More
If you're looking to find an easy payday loan it's... Read More
The bad news about attending college is that it costs... Read More
Outlined below are some of the reasons for choosing a... Read More
Online payday loans seem to be popping up everywhere. A... Read More
Often in our search for finance options, we are led... Read More
People sometimes wonder about common types of loans, especially with... Read More
Online payday loans can get you fast cash through a... Read More
Many banks actively encourage their clients with low balances to... Read More
Cheap online loans may seem hard to come by, but... Read More
Are you wondering why choose a personal loan? One of... Read More
What is a Secured Loan?A secured loan is any loan... Read More
Motorcycle loans for military with bad credit aren't hard to... Read More
Owning a home is the most important dream of any... Read More
Most any large city has a number of small shops... Read More
Watching more and more people fall in the trap laid... Read More
You were on your regular walk with your wife, and... Read More
It has always been an issue for home buyers to... Read More
People have to work to survive. The desire to maintain... Read More
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur... Read More
Here is a useful guide to Personal loans. What is... Read More
If you're like most people, then you've got debt in... Read More
If you've been thinking of getting a secured homeowner loan,... Read More
Here is a useful guide to bridging loans. This is... Read More
Student loan debt is a problem that affects many former... Read More
If the statistics for the quarter ended April 2005 are... Read More
For those in the market for a loan UK ,... Read More
If you are in a hurry for a payday loan,... Read More
Loan |