What is a cheap Secured Loan available online?
A secured loan is a personal loan which is secured against your property (a secured personal loan) and can be used for virtually any purpose.
They are very flexible loans and come with fewer of the limitations associated with unsecured loans while giving homeowners the opportunity to borrow larger loan amounts (between £5000 and £250,000).
If you are a homeowner cheap secured loans can be a cheap way of borrowing money as you use the equity value of your home to offer a lender extra security. This gives lenders the confidence to lend with better terms and lower rates than are normally available with non homeowner loans and tenants.
Are secured loans right for me?
A secured loan is often the best solution for homeowners looking to borrow money as the rates on offer are normally the lowest available in the UK. Also the acceptance rates on secured homeowner loans are higher than those of unsecured loans. This means that if you apply you are much more likely to be accepted for a low rate loan.
What are the main benefits of a secured loan?
Secured loans have many benefits and some great selling points for borrowers:
- The best feature of a secured loan is the rate at which homeowners can borrow money – homeowners tend to be able to borrow at the best rates in the UK and the cheapest loans available today are secured personal loans.
- Secured loans can normally be spread over a much longer term than an unsecured loan (normally between 5 to 25 years). This is especially useful when taking a consolidating or taking a home improvement loan as it gives the borrower the option to reduce the monthly loan repayments by extending the duration of the loan.
- Secured loans will often come with the option of a 5 month payment holiday at the start of the loan. This is optional (you pay interest on the whole amount borrowed from the day you get the funds) but for people with financial problems this 5 month payment break can really help to get them back on their feet.
- If you have bad credit such as CCJ’s (county court judgements), mortgage arrears or defaults a secured loan can be the best option and because lenders see homeowners as less of a risk and secured loan offers can be much cheaper for homeowners with bad credit than unsecured loans would be.
- If you are self employed a secured loan is a way of obtaining finance where other banks and building societies my not be able to help. This is because some secured loan plans allow you to self certify your income (self cert loans) – so as long as you can afford your repayments a secured loan can be a valid (and often cheaper) loan option.
- You don’t need huge amounts of equity in your home to borrow with secured loans. While having more equity in you home may affect the rate of your secured loan offer slightly many lenders are still happy to lend at great rates to people with little or no equity in their property.
- Lenders allow you to fix the rate of your secured loan for upto 5 years so that you know that your payments can not go up. This fixed rate loan means your payments will stay exactly the same for your fixed period and offers borrowers added peace of mind.
How do I find the right secured loan?
As you’ve read above secured loans are very flexible loans and there are literally hundreds of secured loan plans available. The best way to find a secured loan is normally through a broker who can compare the market for you with one quick search. Decisionloans.co.uk offer a free secured loan search to find you a cheap loan in minutes.