Compare Secured Loans with other forms of Finance
What types of loans have you obtained over the course of your lifetime? If you are like most of us, you have probably had at least one car loan and perhaps a mortgage and a personal loan or two. If you have also had a secured loan, you know the power this type of financing puts into the hands of the consumer. It is safe to say that when you compare secured loans against other forms of financing, they are superior.
Secured loans are loans secured on property owned by the borrower. In most cases, that means a home. A lender will loan money based on the amount of equity in the borrower's home in return for the borrower offering that property as collateral. The amount of equity in the home will determine the upward limit of the borrower's loan amount eligibility.
Secured Loan Advantages
Why do we believe secured loans are superior to most other forms of consumer lending? There are several reasons. Here are our top five:
- Loan Amounts â?? Being that a secured loan is taken out against the equity in your home, you have the potential of borrowing large amounts of money. Your upper limit will be your equity, giving you the opportunity to borrow tens of thousands of pounds that would be otherwise unavailable.
- Loan Terms â?? Secured loans offer very manageable terms compared to other types of consumer financing. Some secured loans can be taken out for up to 25 or 30 years.
- Interest Rates â?? Where unsecured loans tend to have higher interest rates, the rates for secured loans are usually lower. That is because using your home as collateral reduces the likelihood of default.
- Loan Flexibility â??When you take a car loan or a mortgage, the money received is only available for a specific purpose. Not so with secured loans. A secured loan is flexible enough for you to use it for just about anything. You can use the money to pay bills, renovate your home, take a holiday, or do just about anything else that tickles your fancy.
Secured loans are better than other types of consumer lending whatever way you look at it. Perhaps the most important advantage is the fact that this type of loan lets you put the power of your home to work for you. It turns equity into a means of financing other needs. Therefore, instead of simply being a drain on your income, your home actually becomes an equitable asset.
Compare Secured Loans
While everything we have told you about secured loans is positive, we would be remiss if we did not warn you to compare both lenders and loans. Comparing different loan products is the only way you can know for sure exactly what you are getting. It is no different from comparing car insurance or mortgages.
When you compare loan products, you will be looking at a number of things including representative APR, standard APR, repayment terms, loan-to-value ratios, and maximum borrowing amounts. Be sure to check each lenders loan details regarding all of the fees and charges they apply to the cost of borrowing as well. These things add up over the life of a secured loan. Alternatively contact our friendly secured loan experts and we will do the comparisons for you based on your individual circumstances. Our experts will then use their relationship with the lenders to secure you the best possible deal.
Also, be sure you can truly afford to borrow the money you are looking for. There is a very real risk of losing your home if you cannot make the payments. Do not take that risk if there is any chance you would default. If a default were to occur, you would still be responsible to pay back any amount that was not covered by the sale of the home.
Secured loans are a good option for homeowners who need to borrow large sums of money over flexible periods of time. By taking advantage of the equity in your home, you could obtain the cash you need for nearly any purpose. The flexibility, power, and affordability of the secured loan make it superior to most other forms of consumer financing.
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