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Secured loans – otherwise known as UK homeowner secured loans – simply guarantees the lender you will be able to make the repayments.(You can apply for a secured loan here using our loan comparison tables.) This guarantee is usually your home and therefore the amount you can borrow on a secured loan is higher than you could otherwise obtain through an unsecured loan. Of course, unless you are a homeowner, you will not be able to apply for low cost secured loans. More...
It is possible you will be able to borrow as much as 125% of the value on the secured home – otherwise known as a second mortgage. It is more common, however, for a secured loan application to be for up to £100,000, depending on your financial needs.
Secured loan interest rates vary and depend on the following criteria:
1) Amount borrowed.
2) Value of property on which the loan was secured.
3) Credit history.
4) Personal circumstances.
With so much at stake, we strongly advise Payment Protection Insurance in the event you are in an accident, fall sick or made unemployed. If for example you are made unemployed and are unable to make the repayments on the loan, the insurance policy will cover the loan repayments for a period of time (ie 10 months). Aside from this, peace of mind is a welcome bonus and can be worth the additional payments in itself.
Take a realistic view to loan repayments. Will you have enough income to live comfortably and still repay the loan on a monthly basis? Do the repayment amounts leave you in a precarious position financially? Also, of great importance, are your repayments based on ideas of projection eg, if I get the promotion, or when I inherit my fortune etc. Such thoughts should present red flags indicating you may be borrowing too much for you to manage.
Apply for a secured loan using our comparison table above. Alternative or use our a-z directory a-z directory and apply online for cheap secured loans.
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