What is a secured loan?
A secured loan is where the lender provides a loan against a security, e.g. your property or home. By obtaining this security the lender's risk is reduced enabling them to provide a loan at a lower rate of interest than say for an unsecured loan. The key point to be aware of, similar to a mortgage on your home, the lender can instigate the sale of your property should you no longer be able to meet the loan repayments.
Unsecured loans provide an alternative to the secured loan however they are typically far more expensive taking account of the interest rates and other fees charged. This makes sense as the lender is taking on more risk with an unsecured loan and thus needs to charge higher fees and interest rates to cover against customers defaulting on loans.
It is not possible to determine the best option for you on a website, this is where you need to consult with a specialist advisor who has been approved by the Financial Services Authority (FSA). At Simpleto.co.uk we make the necessary arrangements for one of these advisors to call you and discuss loan options.
Secured loans are usually have far lower interest rates than unsecured loans and thus provide an attractive option if the borrower is confident they can meet the repayment terms of the loan. Should the borrower not be able to meet the repayment terms, then as with mortgages, their property could be sold to repay the lender.
An alternative to taking out a secured loan could be to remortgage, in this way the borrower could consolidate loans to help reduce overall costs of borrowing. However in many cases borrowers will find that there are redemption charges for their existing mortgage, in some cases these charges can be many thousands of pounds where a fixed rate mortgage has a tie-in period. Additionally there may be other fees from the mortgage lender such as valuation fees, administration fees and solicitors fees. There may also be conditions for a remortgage, such as the lender restricting the overall mortgage to 85% of the property value.
A secured loan can often work out to be the most cost-effective solution for obtaining additional finance. However every individual will have a different set of circumstances so we recommend that you discuss your needs with an approved financial advisor to identify the most appropriate financial solution for your circumstances. This is where Simpleto.co.uk can assist, by completing the form on the right of this page we will arrange for an approved financial advisor to call you and discuss your requirements for a secured loan.
Please be assured that Simpleto.co.uk will only use the information you provide in the website form to enable an approved financial advisor to contact you and discuss your financial requirements. Before you provide any details to an online website we recommend that you first verify that the company is registered under the Data Protection Act 1985 to help assure that your personal information will not be misused.
Other resources:
How to sell my house fast ; how to stop repossession ; sell then rent back your house.
Financial Services Authority (FSA) Regulations
WARNING: THINK VERY CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME COULD BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON YOUR HOME.