Secured Loans Tips

Here are some useful secured loans tips. Secured loans enable most homeowners to borrow capital against the value of their property. A secured loan is where the amount you borrow is secured against the value of your home. This is a loan that's secured on your property, which, if you already have a mortgage is also known as a second charge. So, providing you have equity in your home and can afford the repayments, the chances are you will be able to borrow against it.

A secured loan is a convenient way of borrowing a larger sum of money and repaying it over a longer period of time than is usually possible with an unsecured personal loan. In simple terms a "secured" loan gives security to the lender, not to you, the borrower. It is any loan which requires the borrower to provide the lender with some form of security other than just a promise to pay.

A secured loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments. A Secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that you are effectively using your property to guarantee the loan.

Secured loans have a range of distinct benefits over other types of borrowing. Because of the lower risk to the loan provider, they pass on reduced interest rates to property owners. However, they've got more to offer than just attractive Annual Percentage Rates (APR).

Secured loans come with all sorts of flexible repayment terms that will make it easier for you to repay, so it's important to read the small print. Clauses to keep an eye out for include: 'payment holidays' whereby you can halt repayments for an agreed period of time, and favourable redemption charges - so you won't be penalised if you want to pay the loan back early.

The amount you can borrow ranges from £5,000 up to £75,000 although some lenders will consider lending more. The loan is usually repaid monthly over an agreed term of between five and twenty five years depending on your circumstances and how much you can afford as your monthly payment. The most important consideration is that you can afford the monthly repayments. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you.

The main benefit of a secured loan is that, typically, they offer a cheaper interest rate than unsecured loans. The cheaper interest rate reflects the reduced risk involved for a loan company in providing a secured loan. Approval for secured loans tends to be easier than for unsecured loans.

Secured loans can be used for any purpose and are one of the ways that you can use the equity in your home to raise money for the things you've always dreamed of - like that long overdue holiday, home improvements, or buying a new car. You can also use a secured loan to consolidate your debts into one manageable monthly repayment.

It does not matter what type of lender is providing the loan. Whether it is a high street bank, building society or finance company the result is the same. 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.

If you agree to a secured loan on your home, you should remember that, although the property remains in your possession, it can be repossessed by the lender if the loan and the interest are not paid according to the agreed terms. The lender will then sell the property in order to recover the money you borrowed plus additional costs incurred in recovering the money ? this is the same with all lending companies.

Low cost insurance can be arranged to cover your repayments. Most people find that it is a small price to pay for the peace of mind it gives. Loan insurance policies cover your personal loan if you are unable to work because of illness, accident or disability, or you become unemployed.

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.

---

The Wonders of Compound Interest

Albert Einstein called compound interest "the greatest invention of all... Read More

Get your Dream Car ? Get a Car Loan

You've probably spent years thinking that your dream car is... Read More

How to Finance a Small Business

Confused by how to finance a small business? One key... Read More

Be Wary of Guaranteeing a Loan

You need to be wary of guaranteeing a loan. What... Read More

The Best Way to a Farm Loan Success

The most important and difficult part in farm mortgage shopping... Read More

Quickest Payday Loans - Things To Look For in a Cash Advance Company For The Fastest Loan Processing

To find the quickest payday loans, you need to look... Read More

Auto Loans: Top 5 Tips For The Best Rate

You've got your eye on that shiny new Lexus -... Read More

Car Loans for People With Bad Credit

Car loans for people with bad credit are readily available... Read More

Everything You Need to Know About a Secured Loan

If you're not familiar with the term, a secured loan... Read More

Cant Wait For Payday? Try Check Advance

Check advance can come in really handy when you're waiting... Read More

Benefits of a Bridging Loan

A bridging loan has many benefits, some of which are... Read More

Business Loans: If You Know How To Make Good Use Of Money And Expertise

Are their rewards of being your own boss? Yes, in... Read More

Finding a Cheap Secured Loan

In a time when everything seems expensive, it might seem... Read More

Refinance Your Car Loan - 3 Tips For Refinancing Your Auto Loan Online

Refinancing your car loan is an ideal way to lower... Read More

Payday Loans ? The Legal Loan Sharking Industry

Laws have been created to protect people against "Loan Shark"... Read More

What is a Personal Secured Loan?

A personal secured loan is the generic term for a... Read More

What is a Home Improvement Loan?

A UK Home Improvement Loan Can Give You The Home... Read More

What are Home Improvement Loans?

Home improvement loans are loans specifically designed by loans companies... Read More

An Overview of Getting a Homeowner Loan

Should you be in the market for a homeowner loan,... Read More

Guide to Loan Terms

Listed below is a guide to loan terms. It is... Read More

A Brief Look at Homeowner Loans

Homeowner loans are useful ways to get the things that... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

What is a Title Loan?

A title loan is a loan of money secured by... Read More

Finding the Bad Credit Personal Loans that You Need

It can seem impossible at times to get bad credit... Read More

Personal Loans and Lines of Credit

Personal LoansNormally, a personal loan is unsecured meaning there is... Read More

Motorcycle Loans For Military With Bad Credit

Motorcycle loans for military with bad credit aren't hard to... Read More

No Income Verification Home Equity Loan

A no income verification home equity loan is a second... Read More

Where to Get Your Military Signature Loan

Military signature loans are easy to come by. When looking... Read More

What is a Bridging Loan?

A bridging loan as the name implies is a loan... 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

Relax, Unwind, and Enjoy With American One Secured Personal Loans

Secured Personal Loans are those loans against which you don't... Read More

Taking the Time to Find a Homeowner Loan UK

Trying to find a good homeowner loan UK can end... Read More