Secured loans are becoming increasingly popular due to their flexibility. Basically, a secured loan is one for which you provide some form of collateral in order to cover
amount borrowed in loan. A secured loan is a loan on which you as borrower have provided lender some kind of security for money borrowed. With a secured loan, money that you borrow is secured against all or some of your assets, specifically an item of property that you can prove that you own as insurance for lender against defaults or non-payment of instalments.
A secured loan is secured against your home to act as security to Lender for money you have borrowed. A secured loan is often referred to as a homeowner loan. Secured loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount.
It is a bank loan designed exclusively for home owners which uses net value of their property as security for loan. As a result of inflation and part repayment of mortgages many home owners have a property which is worth far more than mortgage they owe on it. A secured loan enables you to make use of this asset by providing security for your loan, whether you own a house, flat, bungalow or cottage.
Being a home owner affords you better status in eyes of lenders. This makes it possible for home owners to obtain excellent interest rates. A secured loan usually has a much lower interest rate than an unsecured loan. You do not even have to have any equity in your property, some lenders will lend up to 125% of value of property.
It also means that you can get a loan if you've had past credit problems such as CCJ's, are self employed, or have no proof of income. Even if you have a bad credit history such as CCJ's, mortgage arrears or payment defaults, you can obtain a secured loan although rate of interest you pay will be higher than if you had an unblemished credit history.
