Secured loans

What are secured loans?

You can compare leading UK secured loans here

Secured loans are a type of loan whereby the borrower uses an asset such as their house, flat or car to secure the money being borrowed. In the event that the repayments aren't kept up, the lender has the knowledge that there is an ultimate method to pay back what is owed. It is because of this asset security that secured loans can be both a postive and negative method of borrowing:

BENEFITS OF SECURED LOANS

Secured loans usually offer a number of advantages over unsecured loans. The size of the loan can be much higher, but depends on the value (or equity) of your property. This is useful for larger investments.

Secured loans are available to anyone who owns a home (or mortgaged) with even the very bad credit history and resultant poor credit rating caused by things such as CCJs or other credit problems.

Secured loans can be taken out for longer loan periods. In some cases as long as 25 years!

SOMETHING TO BEWARE OF WITH SECURED LOANS

Of course, the fact that the home is being used as the security can lead to severe problems. If repayments are not kept up, the borrower's home may be at risk!