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2008-02-18 02:05:05
Raising Capital On Your Flat With a Secured Loan
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 You may not realize this, but the fact that you own a flat in the United Kingdom means that you are eligible to tap a very large amount of potential borrowing power.
The fact that you own and make payments on your flat means a few things to a lender. It means that you have collateral to offer up on a loan, and it means that you are likely a good credit risk. Even if you aren't a good credit risk (maybe you've had CCJ's, arrears or other blemishes on your credit record in the past), you are still likely eligible to take out a secured loan. A secured loan is exactly as it sounds - you are taking out a loan, and it will be secured by the equity in your home.
There are many advantages to take out a secured loan compared to an unsecured loan. First, you are usually able to borrow much more money compared to an unsecured loan. This should make sense - if you were a bank, would you rather lend more money to someone who was providing collateral or someone who wasn't?
Next, you are going to benefit by paying much lower interest rates than an unsecured loan borrower. How much lower? It depends on your particular circumstances, but usually you will be looking to pay around 8-9% APR with a secured loan, compared to 15-16% for an unsecured loan. This is a HUGE difference over the lifetime of a loan. We are talking about thousands upon thousands of pounds.
Another advantage is that you will have much longer to pay back the secured loan. In reality, it works just like a mortgage, in that you can take up to 25 years to pay it back. Or, if you take out a smaller loan, you can pay it back in as little as three years if you choose. With an unsecured loan, you are unlikely to find a lender who will let you take more than 5 years to pay it back. The long length of time with which you can pay back a secured loan will make it easier for your budget, if you are planning on taking out a substantial loan.
How much can you borrow? The equation to figure this out usually is:
Appraised Value of Your Home x 1.25 Minus Your Outstanding Mortgage
So, if your flat is worth 100k pounds, you would be able to borrow up to 75k if you had a 50k mortgage outstanding on your property (100k x 1.25 - 50k). This is the largest amount that you could borrow - you don't HAVE to borrow this much.
Secured loans can be used for a variety of different reasons, including debt consolidation, home improvement loans and new car purchases.
Applying for a loan is quick and easy. Simply follow this link and you will be taken to our simple and quick application page. Fill out your details, and a representative from a top secured loans firm in the UK will contact you shortly.
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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