Secured Loans
What is a Secured Loan and what are the risks?
A Secured Loan is a loan secured on the homeowners property very much in the same way as a Mortgage is. A Mortgage on a property is known as the "1st Charge" - a Secured Loan therefore becomes the "2nd Charge." If a Secured Loan is never paid then obviously the Homeowners home is at risk. With the Mortgage company having the 1st charge they therefore reclaim their money first. A Secured Loan Lender would then follow as they are the 2nd charge. It is worth remembering that a Mortgage and Secured Loan Company would only ever repossess a property as a last resort.
A Secured Loan is ideal for Homeowners who are looking to raise finance by using their home as security. Traditionally a Secured Loan can provide Homeowners with a lower APR than that of an Unsecured Loan. Obviously a Loan Lenders APR varies depending on the personal circumstances of the applicant. A Secured Loan can be used for a variety of purposes. The most common Secured Loan purposes are for Home Improvements and for Debt Consolidation.
Home Improvement Secured Loan
A loan that is secured on the applicants home address for the purpose of Home Improvements. The loan can be used for a new conservatory, renovations, extension or simply for double glazing. Almost any form of home improvements can be funded by a secured loan. You may find that some secured loan lenders will require proof of what you will be using the funds for. This can be provided by simply gaining a written quote from someone who you are looking to have the work done by. Chances are a Home Improvement Secured Loan will actually increase the value of your property so it will be money well invested.
Debt Consolidation Loan
A loan that is secured on the applicants home address for the purpose of Debt Consolidation. The loan is generally used to consolidate (pay off) all existing credit by putting it into one secured loan and this generally reduces the monthly payments and therefore frees up more of your monthly income to use for more exciting purposes than clearing credit cards, store cards, loans or hire purchases! Sometimes the only way in which the monthly payments can be reduced is by taking the Secured Loan over a longer period than what the existing credit is currently on. This can increase the amount in total that you will pay back but customers who take a Debt Consolidation Loan generally are more interested in the reduced monthly outgoing on credit.
A Secured Loan can be used for other purposes besides Debt Consolidation and Home Improvements. They can also be used for a Car, Holiday or Wedding. Generally Secured Loan lenders do not raise finance for Business. For a Business Loan it may be a better route to contact your local Bank or Building Society.
Why would I want a Secured Loan instead of an Unsecured Loan?
There are many reasons why.
Repayment Period
A Secured Loan can normally be taken over a longer period than that of an unsecured personal loan. Unsecured Loans can normally only be taken over a maximum of 7 or 10 years. Some Secured Loan Lenders will allow the applicant to take the finance over a 30 year period and most will allow the finance to be spread over 25 years worth of payments. Obviously by taking the loan over a longer period reduces the monthly payment to the applicant - although you must remember the longer you take the loan over the more interest you will pay.
Loan Amount
A Secured Loan amount can often be a lot higher than that of an unsecured personal loan. Secured Loans can be taken up to £100,000 - with some lenders even allowing applicants to borrow more. An unsecured loan lender will normally only lend up to £25,000 which sometimes just isn't enough. We may surprise you with the amount you can actually borrow. Let Loan Machine do the hard work to find out.
Poor Credit
If you have poor or adverse credit then the chances you have of getting an unsecured personal loan are very slim. Poor or adverse credit can include many things, CCJ's (County Court Judgements), Defaults, Mortgage Arrears, IVA's, VAR's, Discharged Bankrupts and Missed Credit Payments. If you have any of these then your best route for gaining finance could well be via a Secured Loan. These don't necessarily prevent you getting a Secured Loan - there are many lenders that will lend even if you have a combination of CCJs, Mortgage Arrears and Defaults. We may surprise you by finding a loan that you didn't think you would be able to get. Let Loan Machine do the hard work.
Equity
Equity in your property will help you obtain a Secured Loan but that doesn't mean you have to have equity to get a Secured Loan. Loan Machine has access to lenders that will lend finance above and beyond what your property is currently worth - although to do this you generally have to have a good credit rating. But what have you got to lose? We may surprise you by finding a loan that you didn't think you would be able to get. Let Loan Machine do the hard work.
Self Employed
Self Employed people can often find it very difficult to raise finance. Secured Loan Lenders open the door to the Self Employed. They offer the ability to Self Certify your income. So even if you haven't been self employed for long or you cannot prove your income via accounts then that does not mean you cannot get a loan. If you are Self Employed with bad credit or adverse credit you may think you cannot get a loan - this isn't necessarily true. We may surprise you by finding a loan that you didn't think you would be able to get. Let Loan Machine do the hard work.
Low Income
Although all lenders will only lend responsibly to people who can afford it, Secured Loan Lenders generally are more flexible in their criteria. Some Secured Loan lenders will let you use Disability Living Allowance, Incapacity Benefit, Working Family Tax Credit as well as many other incomes to fund a loan application. We may surprise you by finding a loan that you didn't think you would be able to get.
We set up http://www.Loan-Machine.co.uk do the hard work for you.
Skye Maidstone is the director of http://www.Loan-Machine.co.uk
By Skye Maidstone
Friday, April 26, 2019
Wednesday, March 13, 2019
Personal Loans : Best Answer To Financial Needs When Facing Multiple Choices
A car, home, holiday to favourite destination - who doesn't want all that! Few years back it was not so easy to plan all that especially if you did not have the necessary funds. Now it is! Personal loans are making possible for everyone to borrow money for any kind of requirement. Personal loans literally mould themselves to reconcile with the financial needs of any borrower. "Personal loans" is the generic term for loans. Personal loans are in fact a lump sum which is borrowed from a bank or building society or any other lender. Good personal loans are a rare breed. Like all better things in life it comes with tact, patience and consistent effort.
Personal loans market is huge and so competitive that everyone can now avail customized personal loans. Personal loans are considered to be both secured and unsecured; however, few lenders translate personal loans as unsecured loans. Major characteristic of unsecured personal loan is no collateral. This ensures that tenants also have an opportunity to apply for loans. However, lack of security or collateral with unsecured personal loans is interpreted as high interest rates in loan borrowing terms. This makes secured personal loans a much viable option for secured loans have comparatively low interest rate. Low interest rates for secured personal loans are due to the fact that a security is being offered for their approval.
According to the convenience and requisites of the borrower, he can apply for either of the personal loans. Personal loans that are secured are available for amounts of the likes of £5000-£75,000. The amount offered as personal loans is dependent on the collateral offered. Loan term for personal loans extends from 1-25 years. Unsecured personal loans are provided for amounts ranging from £5000-£25,000 with loan term of 5-10 years. With personal loans that are unsecured the approval time is lesser for no collateral is required to be reviewed.
Uses of personal loans in UK are endless. Personal loans can be put to any use and there is no restriction by the lender as to how you would use personal loans. Most commonly personal loans are used for car purchase, home improvement, vacation, wedding etc. Debt consolidation is another way to use personal loans for constructive purposes. Debt consolidation consolidates high interest rate debts into single low interest consolidated loan. Personal loans are much cheaper than other alternatives like credit cards, overdraft etc.
Eligibility criteria for personal loans is usually reliant on credit score. Anyone who has ever indulged in loan borrowing has a credit score on how he or she has performed earlier. Credit score is a three digit number with which the creditor decides whether to extend you loan or not. Before applying for personal loans, check your latest credit score. Credit score ranges from 300-850. Credit score lower than 580 is considered to be having credit problems. However, credit score below 550 will be interpreted as bad credit by personal loans lenders.
Bad credit score, though considered a liability does not prevent anyone from getting approved for personal loans. Personal loans for bad credit are offered to people with any kind of bad credit problems. Late payments, arrears, defaults, bankrupts, foreclosures etc. are given prompt response when applying for personal loans. Personal loans for bad credit not only provide the finances when needed but give an opportunity to improve credit. This certainly has long term benefits for those who have bad credit.
Different personal loans lenders have different criteria. Therefore, different lenders will offer different terms and conditions for personal loans. Borrowers have all the choices for personal loans. Take your time and compare loans in UK. Comparing loans gives you the ability to make better choice. Comparing loans is not that difficult and requires some simple calculations. Many personal loans sites have the provision to compare loans.
All this advice comes in handy after you have paid heed to the first basic rule of loan borrowing. While borrowing any kind of personal loans, just think over the fact - is it absolutely necessary to borrow personal loans. Take personal loans only if it is affordable. Eventually personal loans would be required to be paid back. Finances are always tightening their control over us. We are constantly in the struggle to build up funds to provide for something or the other. There are answers around the world for your financial need. However, the one that best suits them is personal loans.
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chance for loans .To find a Personal loans, bad credit loans, Debt consolidation, home equity loans at cheap rates that best suits your needs visit [http://www.chanceforloans.co.uk].
By: Amanda Thompson
Personal loans market is huge and so competitive that everyone can now avail customized personal loans. Personal loans are considered to be both secured and unsecured; however, few lenders translate personal loans as unsecured loans. Major characteristic of unsecured personal loan is no collateral. This ensures that tenants also have an opportunity to apply for loans. However, lack of security or collateral with unsecured personal loans is interpreted as high interest rates in loan borrowing terms. This makes secured personal loans a much viable option for secured loans have comparatively low interest rate. Low interest rates for secured personal loans are due to the fact that a security is being offered for their approval.
According to the convenience and requisites of the borrower, he can apply for either of the personal loans. Personal loans that are secured are available for amounts of the likes of £5000-£75,000. The amount offered as personal loans is dependent on the collateral offered. Loan term for personal loans extends from 1-25 years. Unsecured personal loans are provided for amounts ranging from £5000-£25,000 with loan term of 5-10 years. With personal loans that are unsecured the approval time is lesser for no collateral is required to be reviewed.
Uses of personal loans in UK are endless. Personal loans can be put to any use and there is no restriction by the lender as to how you would use personal loans. Most commonly personal loans are used for car purchase, home improvement, vacation, wedding etc. Debt consolidation is another way to use personal loans for constructive purposes. Debt consolidation consolidates high interest rate debts into single low interest consolidated loan. Personal loans are much cheaper than other alternatives like credit cards, overdraft etc.
Eligibility criteria for personal loans is usually reliant on credit score. Anyone who has ever indulged in loan borrowing has a credit score on how he or she has performed earlier. Credit score is a three digit number with which the creditor decides whether to extend you loan or not. Before applying for personal loans, check your latest credit score. Credit score ranges from 300-850. Credit score lower than 580 is considered to be having credit problems. However, credit score below 550 will be interpreted as bad credit by personal loans lenders.
Bad credit score, though considered a liability does not prevent anyone from getting approved for personal loans. Personal loans for bad credit are offered to people with any kind of bad credit problems. Late payments, arrears, defaults, bankrupts, foreclosures etc. are given prompt response when applying for personal loans. Personal loans for bad credit not only provide the finances when needed but give an opportunity to improve credit. This certainly has long term benefits for those who have bad credit.
Different personal loans lenders have different criteria. Therefore, different lenders will offer different terms and conditions for personal loans. Borrowers have all the choices for personal loans. Take your time and compare loans in UK. Comparing loans gives you the ability to make better choice. Comparing loans is not that difficult and requires some simple calculations. Many personal loans sites have the provision to compare loans.
All this advice comes in handy after you have paid heed to the first basic rule of loan borrowing. While borrowing any kind of personal loans, just think over the fact - is it absolutely necessary to borrow personal loans. Take personal loans only if it is affordable. Eventually personal loans would be required to be paid back. Finances are always tightening their control over us. We are constantly in the struggle to build up funds to provide for something or the other. There are answers around the world for your financial need. However, the one that best suits them is personal loans.
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chance for loans .To find a Personal loans, bad credit loans, Debt consolidation, home equity loans at cheap rates that best suits your needs visit [http://www.chanceforloans.co.uk].
By: Amanda Thompson
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