Secured Loans

Secured Loans "loans secured against your property or other assets"

Secured loans as the name describes, a loan secured by another asset, usually a property, this type of loan normally allows you to borrow more than unsecured loans, and at fairly low rates of interest, the term or the loan can normally be longer, 1-25 years, as per a mortgage. You should research the rates and terms as remorgtaging can often be a better if you want to borrow large amounts.

As this type of loan is secured against a property, you should consider the consequences if you are unable to meet repayments, loans of this type come with a warning notice "Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it", we advice you to calculate the monthly payments and consider what you would do if you were to take a reduction in salary or be out of work. The loan provider could force you to sell your house or worse reposes your property

As described, this loan type can often be repaid over a longer period, up to 25 years, the interest maybe lower than unsecured but you are repaying the debt over a longer timeframe, this can be a drain on your disposable income. In some cases the lender will charge you a fee for arranging the loan and rates can be variable just like a mortgage, with interests on the rise, the loan repayments can increase and before you know it you are paying more than you originally expected per month.

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