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Raise Finance with Secured Homeowner Loans

As a homeowner, it is just one of the ways you can use the equity in your property to raise finance in the form of a secured loan.

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 loan, which gives the lender less security.

There 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 the interst rate, 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.

Lastly, 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.

 

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