Car Finances, Secured Loans, Overseas Mortgage, Commercial Loan, Home Improvement Loan, Commercial Mortgage Are Offered By Bucks Loans.

secured loans

Thanks to a buoyant housing market over the last decade, many of us are sitting on – or in – an asset that has risen in value, our own home. And if you have a mortgage on that house, chances are that you have built up a considerable equity value in it.

Equity is the difference between the loan outstanding on your property, and the property’s current value on the open market. Even in situations where local housing market prices may have fallen back a little recently, for many people it is likely that they have a substantial amount of equity. Many of us have repayment mortgages, in which the amount of capital outstanding continues to reduce over time, thus helping to build the equity figure.

Anyone with equity in their home can utilise this as an asset, against which a loan can be secured. Lending institutions such as banks, building societies and specialist loan companies prefer to advance a loan when it is secured against an asset – such as a partial charge against your home – as it gives them comfort in the unlikely event that the borrower cannot carry on and complete the agreed loan repayment contract. And, as you have pledged something of value against your loan, then it is highly likely that you will be motivated to complete the payments in a timely fashion.

As a result of this added comfort, the lender will typically offer a lower interest rate to a lender, reflecting the lower risk. So a secured loan will normally be several percentage points of APR lower, than if you were to take out a personal loan (which is unsecured) for the same amount of money. And it will always be substantially cheaper than borrowing on, for example, a credit card.

So, with the benefit of lower monthly payments, a secured loan will almost always be more attractive than a personal loan. And, so long as you are a homeowner, it will therefore be the most popular option.

Even if you are not in the position to advance your home as security, there are other options. Some loan providers can take alternative collateral, including stocks and shares, other assets such as a boat or car, or even high value items such as jewellery.

A simple legal document is used to give the lender rights against your assets, for the duration that the loan is outstanding. Then, when the final instalment of your loan is repaid, the ownership is transferred fully back to you.

As with any financial product, there is always a choice, and it’s not necessarily the best bet to simply go with your own bank. Often a loan specialist can help arrange a secured loan that suits your particular circumstances; the specialist will know which products have the best rates available, which may have arrangement fees and so on, enabling them to help you make the best choice. And in the case of an unusual item of security, they will be in a position to advise you on the loan provider who would be most comfortable with particular items.
http://www.uksecuredloanspecialist.com/