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2008-05-12 04:16:31
Loans Against Your Property - Why a Secured Loan Be Often Be The Best Solution
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 Secured loans sound scary, but they are actually an incredibly smart way to consolidate your debts or finance renovations on your home.
What is a secured loan? A secured loan is when a lender lends you money based on how much equity that you have in your home.
Let's look at this scenario. Let's say that you currently own a flat that has recently been appraised at 200k pounds. Let's also say that you have 100k in total outstanding mortgages and secured loans on the home. This would leave you with 100k in total equity (200k home value - 100k in outstanding debts on the home).
Depending on the lender, you can normally borrow up to 100% of the total equity in your home. Meaning in the above scenario, you would be able to borrow up to 100k, based on the numbers that were given. By no means are you obligated to borrow the entire amount; this merely represents the maximum borrowing power that you possess.
With a secured loan, the lender that you are borrowing the money from will be added onto your mortgage. This gives the lender collateral in case you default on the loan.
So what are the benefits for you, the homeowner? Adding another company to your mortgage probably doesn't sound too enticing..
There are multiple benefits, the biggest of which is low interest rates. Think about it - you are providing the lender collateral in the form of the equity in your home. Wouldn't it make sense that you should benefit from this somehow?
You do benefit. Most secured loan lenders charge an interest rate of approximately 8-9%. Compare this to a standard 20%+ interest rate for an unsecured loan lender, and you will quickly see why many people choose to take out secured loans on their homes.
The benefits don't stop there though.
As noted above, depending on the equity in your home, you are usually able to borrow much more money with a secured loan compared to an unsecured loan. Try finding an unsecured loan lender who would be willing to lend you 100k pounds! You won't be able to.
Another benefit is - flexible repayment schedules. With a secured loan, you are able to take up to 25 years to pay back the loan. With an unsecured loan lender, the maximum borrowing period of usually 5 years. This can make a big difference when it comes to your budget.
If you need to borrow a substantial amount of money and you currently own a home, then a secured loan is usually your best choice. You will greatly increase your borrowing power and you will be much lower interest rates.
Applying for a secured loan is quick, simple and easy. Simply click on the link below and you will be taken to our easy to use application form. Filling it out will take no more than five minutes of your time, and you are under absolutely no obligation to take out the loan, should you be approved.
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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