it is just one of the ways you can use the equity in your property
to raise finance in the form of a secured
loans – which
is also known as home personal
loans, second charge loans,
second mortgage or homeowner loans - are
secured on your property by the lender as 'collateral' in the
event of a default. This means that the lender has a lower risk
of losing any money and can, as a result, offer a secured loan
at a lower APR (Annual Percentage Rate) than an unsecured
which gives the lender less security.
are plenty of advantages attached to secured loan as compared
to an unsecured loan. Firstly, a secured loan
is easier to obtain, even if you’ve an adverse or bad
credit history, although the terms, particularly
will reflect your financial history and present circumstances.
And if you’ve a good credit history, many lenders will
offer secured loans of more than the equity in the property,
sometimes up to 125 per cent, so if your home hasn't increased
in value as much as you had hoped, or a remortgage isn't practical,
a secured loan could offer you the best deal.
Secondly, a secured loan can be quick and straightforward to
arrange. Because you can keep your existing mortgage in place
and you don't need to sell your home or move house and the security
is assured, a secured loan can be arranged in just a few weeks
and there tend to be fewer upfront charges, such as legal and
survey fees and mortgage indemnity guarantees, on a secured loan.
the benefit of a secured loan is that you can use the money for
any purpose you choose - be it paying off store or credit cards,
improving your home or simply use your cash for
buying a new car or an exciting holiday package.