Loans UK - Secured Loans FAQ
An explanation of Secured loans with pros and cons over other types of credit.
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Secured loans
Secured loans in the UK are mainly categorised by the fact that they are for homeowners. This means that the person taking out the loan uses their home as collateral. Should you fall into difficulties or are unable to make the repayments on your loan you will sooner or later lose your home. This is why before taking out a secured debt consolidation loan it is vital that you solve the route of your debt problems and make sure that you have budgeted fully and can cover the loan repayments
Are Secured Loans Easier To Be Approved ?
Due to the fact that you are in effect betting your home on the fact that you can repay any secured loan taken out, you will find it easier to be approved for this type of loan. unsecured loans are more difficult to come by as they provide more risk to the loan company.
So Secured Loans Offer Cheaper Interest Rates ?
Again, due to the decreased risk of the loan company, people looking for secured loans will find that the interest rates they will have to pay will be much cheaper. Unsecured loans will find that they have to pay interest at a higher rate.
Are Loan Companies Are Less Likely To Act Immediately And Drastically On Payment Defaults ?
The fact that you are a homeowner who is risking their house, you will more often than not find that should you not be able to keep up repayments on your loan you will be given more time to recover from this than unsecured loan holders. This is a rule of thumb but is by no means a guarantee and we advise you wholeheartedly to make 100% sure that you can keep up all loan repayments before you make your application.
Do Secured Loans Take Longer To Process ?
This is true. However, due to the much cheaper interest rates available for Secured Loans the extra time it takes to go through is worth the wait.
Are you struggling to get a loan to make debt repayments more manageable?
We specialise in helping people who have been declined a loan elsewhere. We will endeavour to find the most suitable product for you with the best rate possible. Contact one of our advisors today for a free quote.
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This material is for general information and only constitutes advice in the broadest of terms. You should not rely on this information to make any decisions. Call our advisors on 0800 043 2444 for professional advice for your own particular situation.