Secured Loans Tips

Here are some useful secured loans tips. Secured loans enable most homeowners to borrow capital against the value of their property. A secured loan is where the amount you borrow is secured against the value of your home. This is a loan that's secured on your property, which, if you already have a mortgage is also known as a second charge. So, providing you have equity in your home and can afford the repayments, the chances are you will be able to borrow against it.

A secured loan is a convenient way of borrowing a larger sum of money and repaying it over a longer period of time than is usually possible with an unsecured personal loan. In simple terms a "secured" loan gives security to the lender, not to you, the borrower. It is any loan which requires the borrower to provide the lender with some form of security other than just a promise to pay.

A secured loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments. A Secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that you are effectively using your property to guarantee the loan.

Secured loans have a range of distinct benefits over other types of borrowing. Because of the lower risk to the loan provider, they pass on reduced interest rates to property owners. However, they've got more to offer than just attractive Annual Percentage Rates (APR).

Secured loans come with all sorts of flexible repayment terms that will make it easier for you to repay, so it's important to read the small print. Clauses to keep an eye out for include: 'payment holidays' whereby you can halt repayments for an agreed period of time, and favourable redemption charges - so you won't be penalised if you want to pay the loan back early.

The amount you can borrow ranges from Ł5,000 up to Ł75,000 although some lenders will consider lending more. The loan is usually repaid monthly over an agreed term of between five and twenty five years depending on your circumstances and how much you can afford as your monthly payment. The most important consideration is that you can afford the monthly repayments. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you.

The main benefit of a secured loan is that, typically, they offer a cheaper interest rate than unsecured loans. The cheaper interest rate reflects the reduced risk involved for a loan company in providing a secured loan. Approval for secured loans tends to be easier than for unsecured loans.

Secured loans can be used for any purpose and are one of the ways that you can use the equity in your home to raise money for the things you've always dreamed of - like that long overdue holiday, home improvements, or buying a new car. You can also use a secured loan to consolidate your debts into one manageable monthly repayment.

It does not matter what type of lender is providing the loan. Whether it is a high street bank, building society or finance company the result is the same. If you borrow money using a mortgage as security you are agreeing that the lender can claim the mortgaged property if you fail to keep to the agreement.

If you agree to a secured loan on your home, you should remember that, although the property remains in your possession, it can be repossessed by the lender if the loan and the interest are not paid according to the agreed terms. The lender will then sell the property in order to recover the money you borrowed plus additional costs incurred in recovering the money - this is the same with all lending companies.

Low cost insurance can be arranged to cover your repayments. Most people find that it is a small price to pay for the peace of mind it gives. Loan insurance policies cover your personal loan if you are unable to work because of illness, accident or disability, or you become unemployed.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Bad loans were legally hidden as Lenihan made pledge Irish Times The flaw allowed banks to conceal substantial losses on troubled loans. It reversed the pre-2005 rules under which banks were forced to recognise immediately, losses on bad lending. From 2005 onwards banks were required to wait until the borrower ... and more »

INDABA: Global Mining, Metals Loans, Bonds Rose In 2011 As IPOs Faded -E&Y Fox Business Bank loans for 2011 totaled $187 billion, with about half related to refinancing, consultancy-and-accounting firm Ernst and Young said. Bank loans were up 2% on the year while corporate-bond issues were up 16% on the year at $83.8 billion. and more »

President Obama's student loan debt relief plan goes into effect early Daily Sundial By Irene Nesbitt Graduate students received financial assistance from President Obama's student loan debt relief plan last month. Originally, this was supposed take place on Jan. 2014, but in the midst of the tuition and loan crisis students will see ... and more »

SBA lending returns to pre-boom levels Washington Post A steady flow of new loans backed by the Small Business Administration in the Washington area is helping some institutions return to the pace of lending that was common in the pre-boom years. Through the three months ended Dec. and more »

Daily Mail

'Pay-day' loans used to fund plastic surgery: Website deals linked to 'good looks' Daily Mail By Vanessa Allen Pay-day loan firms came under fire yesterday for offering unsecured lending arrangements to fund cosmetic surgery. Glossy websites promote short-term pay-day deals alongside unsecured loans to pay for operations including face lifts, ... and more »

Change.org

Online Campaign Prompts Sallie Mae to Change Fee Policy for Loan Suspensions New York Times On Thursday, three months after Bank of America backed down from imposing a $5 monthly debit card fee in response to an online Change.org petition that collected 300000 signers, Sallie Mae, the nation's largest private student-loan provider, ... Sallie Mae will credit $50 fee to suspend loan paymentsWashington Post Jobless grads rap Sallie Mae over loan feeMarketWatch Student borrowers fight Sallie Mae's 'jobless penalty'Monmouth Daily Review Atlas all 202 news articles »

Bad loans rise at a faster clip Livemint Among the relatively large banks, gross NPAs of at least four banks—ICICI Bank Ltd, Union Bank of India, Central Bank of India and UCO Bank—in the December quarter were between 3.82% and 3.33% of their loan books. After setting aside money, ... Banks on sticky wicket as textile sector loans on verge of turning badEconomic Times Banks ask borrowers to cover their personal loans, overdraft facilitiesBusiness Standard Rise in NPA makes PSU banks lag private peersmydigitalfc.com Hindu Business Line all 12 news articles »

PR Web (press release)

Payday loan advocate omits pertinent facts Columbia Daily Tribune What she failed to say is that her group is funded by the payday loan industry, the same group that sent threatening letters to churches across the state. Churches are speaking out in favor of capping the rate because they are all too familiar with the ... Same Day Payday Loan Introduces New “How it Works” ResourcePR Web (press release) all 7 news articles »

Banks to take a hit on US home loans Financial Times The Obama administration, which recently announced the formation of a new state and federal unit to investigate alleged frauds involving home loans and mortgage-backed securities, intends to use the threat of litigation against large US financial ... HUD Secretary Expects “Substantial” Payment of Foreclosure Fraud Settlement ...Firedoglake all 2 news articles »

UK bank lending to shrink in 2012 -Ernst & Young Reuters * UK bank loans to shrink by 2.2 pct in 2012 -E&Y ITEM club * Payday loan companies set to benefit as banks cut credit -E&Y LONDON Feb 6 (Reuters) - Total bank lending in Britain is set to shrink for the first time since 2009 this year, and the lack of ... UK Bank Lending To Contract In 2012: ITEM ClubNASDAQ SMEs hit as bank lending slidesTelegraph.co.uk all 6 news articles »