What is a secured loan?
A loan that is asset backed, usually a mortgaged property. This means that if the loan is not paid the lender could take possession of the house.
Why choose a secured loan?
Here is a selection of reasons why a secured loan might be for you:
- It’s possible to borrow far greater sums than for a personal loan.
- The repayment period can be much longer.
- The lenders have a more flexible attitude to previous credit problems.
- Remortgaging might incur costly exit penalties.
- Lenders have a more flexible approach to self employed clients.
What are the disadvantages of a secured loan?
- The loan is secured on property which could be repossessed if payments are missed.
- Fees are added to the loan to cover legal fees, lenders fees and valuation costs.
- Typically charge higher rates of interest.
What are the alternatives of a secured loan?
Secured Loans are fully regulated by the FCA.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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