What is a secured loan?
A secured loan is a loan which the borrower promises the lender an asset, such as their home, secured against the amount they are borrowing. The lender then is assured that should the borrower fail to pay then the lender can take possession of the asset. Should such a situation as non payment arise, then the creditor will take charge of the property that has been used as collateral and could sell it to get back all or some of the original sum that was lent to the borrower. This is known as foreclosure.
Foreclosure means that a lender can enter and take charge of the property should you, the borrower, fail to pay the loan. The property then will belong to the lender. This even applies should the property be sold and there is a sum left over from the sale, it will not be given to you. In some cases it might prove far better for you to try and sell the property yourself rather than letting the lender do this, as the lender might be wanting a rapid sale and be happy to get a much lower price. It is feasible to make an application to the court for authorization to undertake the sale yourself despite the fact that there could be negative equity in your home.
Generally the courts are not keen on permitting foreclosure orders.
We will be able to help you to get a secured loan and our service is without obligation or charge. We will search all the mortgage companies and what deals
are on offer for you. It is so very important that you always fully establish what your options are before entering into any secured loan deal. Knowing what the terms and conditions are and also the interest rates is vital. This is not all, understanding fully what a secured loan is, is significant, as whilst they are cheaper being secured against your home carries risks and this might be something that you would not be happy with. Of course an unsecured loan costs far more than a secured loan as the interest rates are higher.
A fixed interest rate loan will give you the peace of mind knowing what your monthly repayments will be. Having a variable interest rate loan will mean that rates could change, rising or falling and you have to be certain, should they rise, that you can afford this.
Hidden fees are also something you need to watch out for as they can make a big difference to the cost of the loan. Always read the small print!
Check out the typical APR as with a secured loan you more than likely will not be offered the same rate as a ‘typical APR’, but a higher annual percentage rate.
The fact that you are here on our website means you are aware of the fact that you need to save yourself money and of course the hard work involved in finding the right secured loan for you. You need to know that you are in safe hands and we will do all we can to satisfy your financial needs by finding the best deal.