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2008-03-22 11:36:38
Secured Lending - Tapping the Equity In Your Home via a Secured Loan
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 These are challenging economic times right now.
All across the planet, real estate values are dropping and banks are tightening their lending standards.
The good news is that banks will still gladly lend to people who are willing to put up some collateral. If you own a home or flat in the United Kingdom, then you have something very valuable that can be used as collateral - the equity in your home.
A secured loan is exactly as it sounds - you are securing the loan with the equity in your home.
Here it how it works:
You own a home or flat. You already have a current mortgage, otherwise known as a "first mortgage".
Your home is worth around 200k pounds, and you currently have a 110k mortgage and a 10k secured loan on the property.
Most secured loan firms will lend up to 100% of the value of your home, minus your outstanding mortgages and loans. So in this case, most secured loan lenders would lend you up to 80k (200k - 120k in outstanding loans). This is not to say that you are forced to borrow 80k pounds; this is simply the maximum that you would be able to borrow.
The benefits of a secured loan versus an unsecured loan are: lower interest rates (typical rate is 8-9% for a secured loan versus 15-16% for an unsecured loan), flexible repayment schedules (you can take up to 25 years to pay the secured loan back in most cases) and greatly increased borrowing power (try taking out an 80k unsecured loan).
Secured loans can be used for a wide variety of different reasons. Banks usually prefer to lend to people who are either bettering their own financial situations (debt consolidation) or increasing the value of their homes (home renovations). You can still borrow money to finance the purchase of a new car or take a dream vacation though - I am simply telling you what banks prefer.
From start to finish, the secured loan process usually takes around 3-4 weeks. Applying is quick and easy. Simply click on the link below and you will be taken to our easy-to-use application form. Applying takes no more than five minutes, and you will be contacted by an agent from a lending secured loan firm within 1-2 days.
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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