Guide to Personal Secured Loans

Written by John Mussi


Continued from page 1

The application process is a lot longer with personal secured loans than with unsecured loans, due torepparttar fact that your loan provider will need to value your home.

The primary advantages of a personal secured loan are that:

They offer lower interest rates. Becauserepparttar 142512 loan is secured andrepparttar 142513 lender is guaranteed to recover their money in almost any circumstancerepparttar 142514 APR (the interest rate) tends to be less than with an unsecured loan.

The circumstances in which one is able to secure a loan on property are more dependent uponrepparttar 142515 equity inrepparttar 142516 property rather than past credit history and hence individuals with adverse credit histories (such as County Court Judgements and credit card defaults) are not excluded from secured lending.

A personal secured loan represents an efficient debt management tool because it is possible to spread payments to a term of up to 25 years, it is therefore possible to consolidate any existing borrowing and reducerepparttar 142517 monthly outgoings to such an extent that considerable extra income is made available torepparttar 142518 household budget.

The majority of personal secured loans can be arranged without fees thereforerepparttar 142519 personal secured loan often represents a cheaper lending option than a remortgage due torepparttar 142520 fees usually associated withrepparttar 142521 remortgage product.

They are easier to be approved for. In a typical personal secured loan,repparttar 142522 home is used as collateral againstrepparttar 142523 loan, meaning that should you be unable to maintainrepparttar 142524 loan repayments, your home will be at risk.

You may freely reprint this article providedrepparttar 142525 author's biography remains intact:

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




Why Choose a Personal Secured Loan?

Written by John Mussi


Continued from page 1

Personal secured loans tend to have a lower interest rate compared to unsecured personal loans. This is because there is less risk involved forrepparttar lender becauserepparttar 142511 loan is secured on your property.

One ofrepparttar 142512 advantages of personal secured loans is that they are generally straightforward and therefore quick to arrange, often within a few weeks. Asrepparttar 142513 lender is securingrepparttar 142514 loan against your property as collateral, it means you don't have to sell up or move house.

Even if you have a bad credit history such as CCJ's, mortgage arrears or payment defaults, you can obtain a personal secured loan althoughrepparttar 142515 rate of interest you pay will be higher than if you had an unblemished credit history.

Personal secured loans can be used for a variety of reasons, including:

home improvements - a loan is taken out to carry out home improvements, withrepparttar 142516 aim of adding torepparttar 142517 overall value ofrepparttar 142518 home.

car finance - a loan is taken out to financerepparttar 142519 purchase of a new car, asrepparttar 142520 terms of a personal secured loan are more attractive than other car finance options.

mortgage arrears - a loan is taken out to cover arrears in mortgage repayments, or to convert current mortgage repayments into a longer-term, more manageable loan repayment.

debt consolidation - a loan is taken out to pay off existing debt, thus consolidatingrepparttar 142521 debt into one manageable, longer-term loan repayment.

The danger with a personal secured loan is if you are unable to keep uprepparttar 142522 repayments on your loan your home or asset which securedrepparttar 142523 loan could be at risk. It is important to bear in mind that your property is at risk if you fail to keep uprepparttar 142524 personal secured loan repayments.

You may freely reprint this article providedrepparttar 142525 author's biography remains intact:

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


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