A
secured loan, sometimes called a
homeowner loan, is a loan that is secured on a property. The property is treated as
collateral for the loan which effectively guarantees the loan by assigning rights to the security in the event of a loan default. Having this guarantee on the loan allows banks to offer higher amounts and better rates to the borrower, as there is considerably less risk for the lender.
The amount offered by the bank will depend on circumstance, as well as the amount of equity available on the property. Typical loan amounts range from £5,000 to £150,000. Secured loans are available for any reason but typically people will borrow for Debt Consolidation, Home Improvements, Cars and Weddings. To qualify for a secured loan you must be over 18, a UK resident and a homeowner.
Due to the
low risk involved for the lender, a secured loan might be a better choice for a person who is otherwise unable to get an offer for an unsecured or personal loan, particularly those with a bad credit history.
Secured loans can usually be arranged with without a financial penalty which a
standard remortgage might attract. For this reason it is often a preferred option for those who wish to release capital from their property, and can be an option for funding a wedding, buying a new car or for debt consolidation.
Getting a secured loan here at 123-Approved is fast and efficient. Just by filling in one short form, we will search and compare over 90% of the market lenders to find the best deal for your individual circumstances. It takes just 2 minutes to get 123-Approved!
