Why Would You Choose a Secured Loan Over an Unsecured Loan?

Clearly, a loan where your home isn’t at risk is preferable to one where it is. However, secured loans do have some advantages, such as:

• They are easier to obtain. Unsecured loans tend to be cheaper, but those with poor credit scores will usually have their loan application refused. Secured loans allow lenders to consider those with an adverse credit rating because they know, one way or another, they will get their money back.
• You can borrow more. The most you can borrow on an unsecured loan is approximately £30,000, while some secured lenders will let you borrow up to £75,000.
• The debt is spread over a longer period. Due to the larger amounts of money involved and the significant set-up costs, secured lenders prefer the loan to be repaid over a longer period of time, typically 5 to 20 years. Of course, borrowing over a longer period does increase the interest repayments, but it also reduces the monthly repayment.

Secured Loans for Home Improvements

If you are looking to improve your home with an extension, conservatory or through general repairs or improvement, a secured loan can be an ideal way to raise funds. In recent years, due to low interest rates, many borrowers have opted to remain on the low rate that they have and borrow using a secured loan, rather than remortgage.

Secured Loans for Debt Consolidation

Fo many, it can be cost effective to consolidate a group of debts into a single, more manageable payment. It is necessary, however, to take great care to ensure that this is the correct course of action. Debts – such as credit cards, personal loans, store cards and more – are short term debts, and if you consolidate these with a secured loan the term will increase – which could increase the amount of interest you pay.

Bad Credit Secured Loans

Due to the number of lenders within the secured loan market, it is possible to obtain a loan even if you have bad credit. Whether this encompasses defaults, CCI’s or bankruptcy, we may be able to help. If the rest of the application is of good quality – along with sufficient equity in your property – you stand a good chance of being approved.

Secured Loan Rates

Because the lender has security over your property, the rates for secured loans can be competitive. As a result, lenders will take into account various factors when determining the rate of interest you will pay, such as:

• Your age
• Your income and expenditure
• How much equity you have in your property
• Your credit situation
• Affordability
• The condition of your property

Secured Loan Lenders

There is now a wide variety of lenders who offer secured loans covering most situations. Your dedicated loan broker will be able to offer you advice as to the most suitable lender for your circumstances.

Talk to an Expert Adviser

We’ve been helping people every day for the last 20 years and know the markets like the back of our hand. Whatever, your circumstances, we will be able to show you the right options to suit your needs and plans, and guide you through the exact process to a successful application. We only work with our network of reputable brokers and direct loan providers who we know you can trust, so you won’t have to deal with the wrong type of lender.