Understanding Secured Loans

A secured loan is any loan that is secured on your home or property. Secured loans are more easily accessible to those with a poor credit record. This means that persons who are self-employed, or who have recently changed jobs, or who have adverse credit (ccjs, arrears, defaults, etc.) can take out a secured loan.

If you're a homeowner, you may get a lower rate through a secured loan using your property as security. If you borrow money using a mortgage as security you are agreeing that the lender can claim the mortgaged property if you fail to keep to the agreement. The risk to the lender is reduced so the interest rate offered is lower. This is why secured loans tend to be cheaper than unsecured loans and other forms of borrowing. The lender has the added benefit of security, which provides protection in the event of your inability to repay.

You can borrow larger amounts and repay over a longer period. The amount available usually ranges from £3,000 to £50,000, although some lenders will consider lending more. If you wish to borrow a larger amount or if you require a longer period in which to repay the loan, secured loans may be the most suitable for you.

You can consolidate more expensive borrowings into a single much cheaper monthly payment. You may choose to take out a secured loan in order to consolidate debts and replace high-interest loans with a low-rate loan. The loans being consolidated may include higher purchase loans, unsecured loans and credit cards.

Before you take out a secured loan, make sure that you can afford the monthly repayments. Also, read the loan agreement carefully and pay particular attention to the rate of interest required, the term of the loan, the repayments required and the total amount payable. If you fail to repay the loan, the lender may repossess your property or home and sell it to repay the loan. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

© Copyright 2005, Bwalya Mwaba writes for the Secured Personal Loans website . To apply for a secured personal loan online, just fill out a simple form at: http://www.secured-personal-loan.org.uk/

T his article may be reprinted as long as all the above links are active and clickable and the author box (by-line) is not edited.

---

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

Loan Basics

There is more than one type of loan. Depending upon... Read More

Payday Loans And Pawnshops: Comparing Two Popular Ways Of Getting Cash Quickly

I remember years ago growing up when you needed some... Read More

What is Credit Scoring?

Have you ever wondered what is credit scoring? Credit scoring... Read More

A Guide to Finding Cheap Loans

Finding cheap loans isn't always easy? it seems like every... Read More

Guide to Secured Loans

Here is a useful guide to secured loans. A secured... Read More

Bridge Loans: Everything You Wanted To Know

As the name implies, bridge loans fulfill a vital need... Read More

Be Careful With Loans For Bad Credit

If you're saddled with debt or find yourself in an... Read More

Bad Credit Personal Loan - A Pay Day Loan May Be Your Best Option, No Credit Check

If you have bad credit, have an emergency and need... Read More

Military Payday Loans ? When?s The Best Time To Avail Of These?

What are the opportune times to avail of military payday... Read More

How to Find a Loan or Mortgage with Bad Credit

If you have bad credit and you are trying to... Read More

A Guide to Finding Home Owner Loans

If you're in the process of trying to find home... Read More

Secured Loans ? Filling the Void Created by the Deficiency of Resources

"Money is like a sixth sense without which you cannot... Read More

So Many Loans, So Little Time

If you find yourself in need of poor credit loans,... Read More

What is a Car Loan?

A car loan is a type of credit offered by... Read More

Car Finance Places You On The Top Gear While Buying A Car

Fast car on open roads. It is a perfect picture... Read More

Beware of some Get Cash Now Vendors

Some weeks it feels like you're living hand to mouth.... Read More

Finding the Secured Homeowner Loan for You

If you've been thinking of getting a secured homeowner loan,... Read More

What Is A Payment Protection Plan?

A Payment Protection Plan is an insurance cover you would... Read More

Payday Loan and Cash Advance Lenders Online - How To Compare Them

When searching for a payday loan company online to get... Read More

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More

Signature Loans: A Signature Can Relieve Stress Of No Collateral And Bad Credit

The dynamics of loans borrowing procedure has brought new ways... Read More

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution... Read More

Is a Microloan Right for You?

If you've been tossing around an idea for a small... Read More

Cash Advance Payday Loans

The ads are on the radio, television, the Internet, even... Read More

A Method Used For Evaluating Online Lenders

Online lenders might be high quality, serious companies such as... Read More

A Brief Look at the Origins of Lending

When trying to discover the origins of lending you might... Read More

UK Student Loans Explained

Student loans seem to be the only feasible way out... Read More

All About Bad Credit Secured Loans

Bad credit secured loans are a relatively recent addition to... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

Need a Personal Loan? Have Poor Credit? See if a Payday Loan Would Work For Your Needs

Poor credit and a financial emergency don't seem to mix... Read More

Short Term Payday Loans - Use One Online To Get Cash Quick

Short term payday loans are now available online. After filling... Read More