What Are Secured Loans?

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Make sure you know the difference between a secured loan and an unsecured loan. It could make all the difference in lots of ways including amount you can borrow and the repayment rates you then have to stick to.

Secured Vs Personal (Unsecured) Loans

You'll have heard about both secured loans and personal loans, so why not compare the difference for yourself. Do you know the differences, what the pros and cons of taking out both these types of credit are?

There should be a simple rule about credit - if you can't afford it - you won't get it! But there hasn't been this rule - so all sorts of people have taken out secured loans or personal loans without the lender really checking whether they can or cannot afford the repayments.

In short, the difference between personal loans and secured loans is simple - secured loans require a security - usually a house - that can be used to pay off the loan should you default on payment. A personal loan is unsecured, more risky for the lender and therefor usually more expensive to borrow.

What About Secured Loan Rates?

For many people, secured loans are a way to gain access to an afforable route to borrowing money (or raise some finance) based mostly on the equity that their house has. The biggest draw back with secured loans is the fact that if you start missing payments and can't afford replayments, then you may lose your home as the lender will seek to get all their money back.

You can access a range of great rates direct from leading UK providers. With secured loans you are guaranteed a best rate loan as these are available only to homeowners as the lenders risk is offset by taking a charge (securing) against your home.

So it goes without saying there's a whole range of things that you need to consider before you sign on the dotted line - most of which should be about ensuring you check you can afford repayments and is taking out a loan really neceassy in the grand scheme of things - could you wait a few months and do without it? Remember you are also paying for the priveledge of borrowing this money!

What Things to Consider with Secured Loans

So the following points should be considered :

  •     Compare secured loans direct from as many leading providers to get the best rates
  •     Ensure you can easily afford the repayments
  •     Make sure you are comfortable with repayment periods
  •     Finally, make sure you ned to borrow the money

Check Why You Want a Secured Loan

So are you choosing a secured loan UK provider right now? Do you need help? Do you fully understand the difference between secured and unsecured? These and opther questions are listed below to help you make sense and find out more before you apply.

Typical secured loans applications :

  •     Look for between £10,000 and £250,000 to borrow
  •     Require your property as security
  •     Have no initial set up costs
  •     Pay a lower APR than personal
  •     Opt for longer repayment periods up to 25 years

Payment protection?

Did you know that secured loans payment protection is a very specific type of insurance to ensure that you can continue to pay your loan even when you are ill? Did you know that a lot of people take out loans payment protection insurance with no hope of ever being able to claim against that insurance!!!

Secured loans payment protection, that's offered when you sign up for your loan, means that you can still make payments against your loans when you lose income due to an accident, sickness or even unemployment. It's expensive, but it may help make sure you don't lose your home - right?

There is a ton of small print with all loans payment protection plans, so always always check first.

 

Useful Websites

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  • uSwitch.com
    uSwitch.com helps customers compare prices and switch services on a wide range of services including gas, electricity, home phone, loans, insurance and broadband.
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  • Cash Lady
    CashLady is a short term loan service provider in the UK offering payday loans, cash loans and small installment loans.
  • Logbook Calculator
    Borrow money with your car as the security regardless of your credit rating. Log Book Loans have increased in popularity in the UK, so check our site out to see what you can borrow now.
  • Car Cash Point
    Withdraw the cash from your car including prestigious and vintage cars.
  • Lending Expert
    Visit Lending Expert for comparison and expert advice on cheap loans, mortgages and finance.
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Further Reading

  • Organising A Personal Loan Online

    Need a personal loan but dont know where to start? Check out our guide to how to get the best personal loan deals online.
  • A Guide To Personal Loans

    If you want to find the best guide to personal loans online, then let the Lifestyle.co.uk team come to your rescue. Simply written to let you get the facts - straight!
  • Getting A Commercial Loan

    Follow our guide on how to secure the best commercial loan quickly and easily, whilst saving money and also time browsing and researching.
  • How a Bridging Loan Works

    If you want to know how a bridging loan works, our quick low down on how it works could be just the thing before you jump in.
  • What Is A Collateral Loan?

    Want to borrow money? Thinking about a loan? Have you heard about a Collateral Loan as one option?

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