What are secured loans for homeowners? – a secured loan is a loan secured by collateral. A first or second lien or charge is usually filed on the collateral by the lender.
Searching For Secured Loans?
Lenders almost always require an appraisal by a national appraisal firm acceptable to the lender for fixed asset loan.
If you are a Home Owner (sorry, this is not for Tenant loans), you are in full time employment or self-employed for at least 1 year and a minimum advance of 5,000 with a maximum advance of 250,000.
If you can produce items like payslip’s, accounts if self-employed, proof of address, ID, etc. and have a good credit history, we can get you a very competitive interest rate for your secured loan.
The secured loans rates will normally be cheaper than going with the unsecured loans option
Since low rate secured loans for homeowners can be secured on property, most lenders will approve your cheap secured loans even if you have a bad credit history, which make on line secured loans very attractive to people who would otherwise not qualify for a secured loan from their local bank.
A bad credit secured loan for homeowners is great if you want to raise a large amount; are having problems getting an unsecured loan or have a poor credit history.
You may be able to get a cheap secured loan even when you have been turned down for an unsecured loans.
How Secured Loans work
We now have access to lenders who in principle have the ability to lend huge sums of money. But the amount you can actually borrow depends on a number of factors:
- You should possess a mortgage on your property
- The financial institution will establish a maximum loan value as a proportion of the worthiness of your property
- You should have the ability to demonstrate you could afford the repayments for the loan value you need
- Your credit history will have an influence on the giving selection
Secured loans are typically loans that are secured against a house or an item of high value. The most popular secured loan is known as mortgages.
The secured loan or mortgage is secured against your home so that if the customer falls behind on their repayments the lender has something to recoup back the value of the loan that remains unpaid.
A secured loan or a homeowner loan can be known as a second charge on the mortgage. As the name suggests this type of loan is only available to those that are homeowners.
Typically, secured loans are taken out to borrow large amounts. These types of loans are usually used for home improvements, debt consolidation or a combination of large purchases.
Like a personal loan, secured loans have regular monthly repayments, and is usually borrowed over 5 to 25 years. This allows the borrower to budget their repayments to ensure they are able to afford the loan for the full term of the loan.
The advantage of secured loans are they are certified by the Financial Conduct Authority (FCA). This means the same rules and regulations that are in place for mortgages are also relevant to secured loans and so you can guarantee you are being protected and being treated fairly.
Secured loans are excellent if you require to borrow quite a large amount of money. Typically personal loans are only for borrowings up to £25,000 and so if you require to borrow excess of this a secured loan is your best option.
Obviously the key requirement of a secured loan is that you are a home owner and that you have enough equity in your home to borrow.
There is something that you should strongly be made aware of before taking out this type of loan. Before securing a loan against your house you should be extremely confident that you are able to continue to keep up with the repayments for the full term of the loan.
If unfortunately you should default you risk losing your home.
If this was to happen the lender can take you to court to get repossession of the house, the original mortgage is repaid back then the secured loan is repaid for the outstanding debt.
On the other hand, if you are using the secured loan to consolidate debts as long as you keep to your repayments it can have a positive effect on your credit profile, which in the long term is a positive.
To find excellent secured loans click on the links on this page to be taken to a wide range of lenders that offer great deals that are certified by the FCA.
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