Secured Loans and Unsecured Loans Overview

Secured Loans

The amount borrowed is secured against your property and is usually repaid over a shorter period than the life of any existing mortgage. These loans generally have a very competitive rate of interest, depending upon your circumstances, as the lender has the security of your property if it is not repaid. You must remember that your property may be at risk if you do not keep the repayments to a secured loan.

UK Secured loans often offer two main advantages- due to the security they to the lender they are easier to obtain and often have more preferable interest rates.

The main disadvantage to the secured personal loan is the most obvious one that the loan s secured upon your property and if you fail to keep up repayments then your property will be at risk and could be repossessed.

Unsecured Loans

This loan can be used for any purpose. To obtain a unsecured loan, you have to have a good credit history. Unsecured loans usually have a slightly higher interest rate, as there is more risk to the lender if the loan is not repaid.

UK Unsecured loans are more difficult to obtain than secured loans, and you must usually have a good credit record in order to obtain one.

Re-Mortgage : take advantage of lower rate of interest

Re-Mortgage

A recent survey has estimated that homeowners currently spend $720 million per annum too much on mortgage payments because they were unaware they can get a better deal from another lender. The financial services industry is arguably the most competitive it has ever been and because of this consumers can get fantastic saving on their mortgages as companies compete with each other for business.

Why to re-mortgage?

To take advantage of lower rate of interest or to release the equity that has built up in your home, to extend or reduce the term of mortgage or even to consolidate the debts. You may also want to release money to buy-to-let a property.

Personal Loan

A personal loan is an agreement between a borrower and a lender such as a bank, building society or loan company, allowing the borrower to be lent a specified amount of money according to certain terms and conditions. The loan is usually dispensed as a lump sum and then repaid by monthly installments. Personal loans usually start at about $500 and can go up to beyond $20000. Customer will agree to pay back the loan over a predetermined period of time, referred to as the term of the loan, in monthly installments. Loan terms can very between six months and twenty-five years; but it depends on the individual lender as to their requirements and conditions.

This charge is calculated as a percentile of the borrowed amount and accrues with the length of time for which the money is borrowed. This is called interest.

UK Personal loans are usually available for almost any purpose. You might want to fund your dream holiday, pay for an extension on the house, or buy a car. Personal loans are available for almost any amount you require, though lenders will usually only provide loans between certain brackets.