Secured personal loans - UK Finance Online

A secured loan can be used for any legitimate purpose. Some online UK lenders might have specific restrictions, but the loan can usually be used to finance anything from buying a new car to consolidating existing debt.

A secured loan means that your home is used as security against the loan. The main benefit of taking out a secured loan is that you should be able to get a better rate of interest than you would with an unsecured loan, and therefore monthly repayments are kept down. You may also have the choice of a fixed or discounted rate of interest.

Lenders are also much more likely to offer flexible payment terms, like repayment holidays, which can be useful at times when money is tight such as the birth of a child, or a daughter's wedding or for the less happy times in life, for example, if you should lose your job. They might also allow you to repay a loan early, something that can incur high penalty charges with some loans, so check with the lender before you agree to the terms.

Secured loans tend to be easier to obtain, because you are guaranteeing repayments against the value of your property, and the amount you are allowed to borrow is usually much higher. This can be useful if you have a poor credit history or county court judgements against you and applications for other types of loans have already been turned down.

You have the option to spread repayments over a long period of time - in some cases up to thirty years - thereby reducing the amount that needs to be paid back each month. Repaying over a long time does however mean that the total amount you repay against the loan will be greater in the long run.

Biggest advantage - lower repayments

Biggest disadvantage - you must secure the loan against your home

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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