If you're a UK homeowner, you've likely been approached by one or
more finance firms looking to give you a guaranteed secured loan.
Secured loans have become very big business here in the UK. Secured
loans can allow you to make repairs to your home, go on holiday, better
your education or pay for your daughter's wedding. The possibilities are
as limitless as your imagination. And while the big money experts warn
that there is a dark side to taking out a guaranteed secured loan, if
you need money for any purpose at all a guaranteed secured loan could be
your best possible solution. Here are some of the reasons why you
should look for a guaranteed secured loan if you need money to meet
obligations or extend your finances.
- A guaranteed secured loan offers more flexibility than typical bank loans.
Because you secure the loan with your home, you'll find more lenders willing to approve your guaranteed secured loan. That means more choices and more options for you. - You'll pay lower interest on a guaranteed secured loan than on most other types of loans.
Since the lender takes less risk of losing his or her money when you take out a guaranteed secured loan, you'll get lower interest rates. The interest rates on secured loans can be as much as 2-3 percentage points below the prevailing rate for unsecured loans. - You can borrow more money with a guaranteed secured loan.
Most lenders won't consider a loan of more than £25,000 without collateral, even from those with the best credit. If you need to borrow more than £10,000, a guaranteed secured loan will nearly always be easier to obtain and get you lower interest rates. - You can get a guaranteed secured loan with less than perfect credit.
It's far easier to qualify for secured loans than it is to qualify for most other types of loans. Since you pledge your house as collateral, lenders are assured of recovering their money, even if you default on the loan. - There are no restrictions on how you use a guaranteed secured loan.
A guaranteed secured loan can be used for any purpose. You don't even have to state the reason for borrowing. Even if you do, there's no need to account for your expenditures from the money.
Rachael Gallant has worked for the UK financial services
market for a number of years specialising in secured loan applications
for UK home owners. She understands how time consuming it can be trying
to interpret the associated jargon which is why she writes clear, easy
to understand guides exclusively for "Secured Loans Centre".
