Secured loans can be a sensible way to borrow for certain
expensive items, such as home improvements or debt consolidation.
Secured loans are also commonly known as a homeowner loan, home
loan or home owner loan. A loan provided by a lender which is
secured against any property is known as Secured Loans..
A secured loan is the best option for people who own there own
homes & who feel the need for a personal loan. A Secured loan is
less risky for the lender as the loan is secured on any asset
normally a house. A lower rate of APR will be charged than that of
What is APR?
APR is Annual Percentage rate, the APR is a measurement used to
compare different loans offered by competing lenders, both the
interest rate and closing fees are taken into account . Unlike an
interest rate, an APR gives you a bigger picture when shopping for
the best deal on a loan. For example, an APR lets you see the
total cost of a mortgage, including closing fees and lender points
over the life of a loan - not just the interest due. Even though
lenders are required by law to show a loan's APR, they never use
the same fees in their calculation,. So always check to make sure
that the APRs you are comparing include similar fees.
Whatever your financial circumstances, there are secured loans for
you. High street lenders have websites providing details of their
products; some companies are only web based and so details of
their secured loans can only be obtained online.
Secured loan is usually provided with a lower interest rate than
an unsecured loan because your property will be secured against
the loan.. They are normally quicker to arrange because the lender
has some security to offset against the loan should you default on
Homeowners are now able to borrow capital and offset the risk
against the value of their property because of the secured loans.
Anyone taking out a secured loan is effectively using their
property to guarantee the loan. So if the borrower fails with the
repayments, there could be a possibility of their home to be at
Because the loan is secured against your home, the interest rate
should be cheaper than an unsecured loan and you may be able to
borrow more. One of the major benefits of a secured loan is that
the interest rate charged by the lender tends to be significantly
lower than that of an unsecured loan.
The consequences of not being able to keep up your payments are
much more serious than with an unsecured loan. This is why before
taking out a secured loan it is necessary that you have considered
your debt problems seriously and made sure that you have budgeted
fully and can cover the loan repayments.