Listed below are some of the many reasons why you should choose a secured personal loan. A secured personal loan is often referred to as a homeowner loan. A secured personal loan is secured against your home to act as security to the lender for the money you have borrowed.
It is a low interest loan designed exclusively for homeowners. As a result of inflation and part repayment of mortgage most homeowners have a property which is worth far more than they owe on it. A Secured Personal Loan enables you to make use of this asset which will provide security for your loan.
Secured personal loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount. If you are a homeowner, then the secured personal loan is for you. A secured personal loan can sometimes be the best option if you are looking for lower rates of interest, longer repayment lengths and own your home.
Essentially, a secured personal loan is one that is secured against your property, which is why they are often also called homeowner loans. What this means is that, by taking out a secured personal loan, you are using your house to guarantee the loan repayments. Because the risk is lower for the lender than on an unsecured loan it is possible to get better interest rates than on a loan that is not secured on a property. This is also the reason that lenders are able to offer higher sums than for unsecured loans.
It is also easier for you to be approved for a secured personal loan because you are using your home as security against being able to make the monthly repayments. It is very likely that your loan is far smaller than the value of your home, so the loan provider will view it as less of a risk.
A secured personal loan can sometimes be a better option when taking out a loan due to the fact that the interest rates on the secured personal loan will tend to be much lower than for unsecured personal loans. This is due to the fact that you are putting up your property as collateral.
A secured personal loan gives you the option to pay back the loan borrowed over a longer period of time and at a lower interest rate. Secured personal loans also offer you the ability to increase your repayments or to repay a lump sum if your financial situation changes at any time. This can help to reduce the amount of time you will be paying off the loan, and of course the total amount of interest you pay back.
Taking out a secured personal loan gives you the opportunity to borrow money in order to increase the value of your home by making improvements.
You could also take out a secured personal loan in order to pay off a number of other smaller loans, credit or store card balances. You would then benefit by having to make a lesser monthly payment and the ease of having to make only one payment each month.
Secured personal loans can be used for a wide range of purchases or financial help, from home improvements, weddings, buying a new car to consolidating all your existing loans, credit and store cards.
There are several ways to raise cash, but a Secured Personal Loan has the following advantages:
- offers a flexible and fast way of raising cash
- loans are available for most purposes including debt consolidation
- offers lower interest rates
- there are usually no valuation or legal fees to pay
- borrow any amount from £5,000 to £75,000
- repayment period of between 5 – 25 years
It is important to bear in mind that your property is at risk if you fail to keep up the secured personal loan repayments.
About the author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.