Secured loans

Secured loans are the special types of loans connected with the borrower’s property. The collateral in that case is the car, the yacht and, surely, the house. Mortgage is one of the most popular types of secured loans. In case the borrower is interested in a long-term debt with really low rates, a secured loan will be the best decision for him.


The amount of money available for the borrowers is really big. Some lenders provide about £150.000. But in most cases the sum varies from £ 5.000 to £ 100.000. For big sum of money the repayment period is really long. The total repayment period is from 5 to 25 years. In case the borrower is interested in mortgage and he/she is looking for the lowest rates, the lender could ‘enlarge’ the repayment period up to 35 years.

The level of rates may vary according to the lender, repayment period, the region of the country, borrower’s credit history and so on. The most optimal variant with the best requirements is about 10%-11%. The larger the sum is, the longer the repayment period. The longer the repayment period is, the lower the rates. But one should remember that the longest repayment period for a standard loan (£25.000) is 10 years only.

One should remember about some risks connected with the secured loans – the risk of foreclosure and repossession. In case of foreclosure your house may be seize in favor of the lender to cover the debt. In case of the repossession other borrower’s property (like a car, a yacht) may be seized to pay off the debt. Making regular repayments is the best way to save your home and other property.

If you have some problems with making regular repayments or have just lost your job and now you are temporary out of employment, contact the financial agent not to be caught into financial trap. Actually, the agent would find the best variant for you according to the agreement and you won’t lose your home (only in case it’s just a temporary problem). If you have a perfect credit history the lender will surely make advances. Even if you have bad credit history, you’ll have an opportunity to improve and correct your credit history. Don’t panic, if you haven’t contacted the agent and now there is a risk of foreclosure. You still have a chance to save your property by making another loan to pay off for the previous one. In any case, you can sell your house to pay off and to save at least little sum of money. It’s better to sell the house and to pay off instead of losing your property irreparably.

To apply or not to apply for a secured loans depends on you. Anyway, the borrower should consult the financial agent before making a secured loan to see all pros and cons. By the way the borrower should have additional income to be ready to make regular repayments in his or her own rights.

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