Secured Loans
A secured loan is a form of borrowing whereby you must supply the lender with some sort of security to back up your loan application. In the vast majority of cases the security will be in your home. As a result if you fail to keep up with your repayments the lender may well take away your security, you could lose your home. This potential risk make it paramount to compare UK secured loans to make sure you find an affordable deal.
Due to the potentially devasting pitfalls of secured loans it is vital to know exactly what you are agreeing to before taking out any kind of secured borrowing. When you are comparing secured loans always bear in mind that the rates displayed are largely used as a guide. The exact rate you pay will be based on multiple factors including the amount you are borrowing, the term of the loan, your income and and your credit history. If you've had previous credit problems be prepared to pay a higher interest rate on your loan.
Although the interest rate may be higher the fact you have to put up security makes it easier to get accepted for a secured loan rather than a personal loan or credit card; this can be especially true if you are self-employed of have bad credit. Secured loans are typical available for amounts ranging from £3,000 to £50,000 while some lenders will consider loan amounts of up to £100,000 based on your credentials.
Secured loans can be a useful form of finance if you want to borrow over a long period of time, many secured loans are available on terms up to 30 years. Your secured loan can also be used for a wide range of purpose including home improvements and debt consolidation. If you are hoping to make overpayments on your loan to reduce your term and interest payments always check if your agreement includes any penalty charges for overpayments.
When looking for a secured loan always remember that any loan under £25,000 is subject to the Consumer Credit Act of 1974 and the lender must give you a seven day consideration period. Any secured loan over this amount is unregulated making it essential that you read the credit agreement carefully before signing; once signed the agreement is binding. If you have any concerns over the terms of your credit agreement always seek independent advice before signing.
Finally don't forget that the loan is secured against your property and should your circumstances take a turn for the worse you could lose your home. When taking out a secured loan look into purchasing adequate payment protection insurance and life insurance as a safety net. During your application it is likely your secured loan lender will offer you one of their insurance products, however, you are likely to find a more competitive insurance deal by shopping around.
Where to Compare UK Secured Loans
As far as the internet goes secured loans are split into two main groups. The first is a collection of trustworthy professional organisations offering competitive deals, comparing these companies products can help increase the chance of you finding the right loan for your circumstances. The other is a far more dubious group, offering loans that look good but fail to deliver a quality, honest service, falling foul of a dubious lender can be a costly and traumatic experience. Always remember that a secured loan puts your home at risk and dealing with the wrong people can be disasterous.
But lets not be too downhearted, looking on the right websites can open the door to a wide selection of reputable lenders and competitive interest rates, the following sites may provide a useful starting point for your search.
www.accepted.co.uk searches over 250 secured loans from more than a dozen of the UK's leading lenders.
www.uswitch.com provides an indepth comparison of secured loans and information on how to choose the right deal.
www.moneyextra.com compares secured loans from a wide range of UK lenders.
www.ukpersonalloanstore.co.uk offers a search that covers 90% of the secured loans market including 250 loan deals.
www.moneysupermarket.com compares over 150 secured loan products and offers advice on dealing with debt.
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