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2008-01-03 10:59:25
125 Percent Second Mortgages - A Sound Financial Decision?
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 You probably already realize that your home or flat is likely your biggest asset. What you might not realize is that your home provides you with a source of substantial borrowing power should you ever need it.
Here is how it works. When you own a home or flat, you are able to take out what is called a "secured loan", which simply means a loan that is secured by the equity in your home. Because you are providing the lenders will collateral (in the form of equity in your home), you are able to borrow substantially more money than if the loan was unsecured.
How much more? If you own a home or flat, then you are likely eligible for a 125% secured loan. To ascertain how much money that you would be able to borrow with a 125% secured loan, simply work out this formula:
Appraised Value of Home Times 1.25 Minus Outstanding Mortgage
This will leave you with the highest amount of a loan that a lender is likely to approve you for.
So if you own a flat that is worth 100k pounds and you have a 50k pound mortgage remaining on the property, then you would be eligible for a 75k secured loan.
Secured loans can be used for a wide variety of reasons, including home improvements, vehicle purchases and debt consolidation.
The benefits of a secured loan versus an unsecured loan is lower interest rates (usually 7-8% lower APR) and a flexible repayment schedule.
Secured loans are dead easy to apply for, and you have no obligation to take the loan should you be accepted.
Apply for a Lending Place secured loan today!
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Get Your Free Loan Offer Today - Click Here
There is NO FEE and you are under NO OBLIGATION!
We'll Compare over 250 loan plans and search over 90% of the loan market.
Applicants with bad credit history, Mortgage Arrears, Missed payments or CCJs are welcome.
A lot of big banks are competing for your business - Apply Today
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