If you are a homeowner with equity in your property you may be eligible for a secured loan also known as a homeowner loan.
What are secured loans?
A secured loan is a loan where you will be required to use your property as security against the loan, so the lender is able to balance the risk of lending to you. The amount that can be borrowed differs from lender to lender and your individual circumstances. The amount that can be borrowed, the term available and the Annual Percentage Rate (APR) will depend on:
- the value of your property
- your ability to repay the loan
- your personal circumstances
You need to think very carefully about how you manage a secured loan. If you default on the loan you risk losing your home.
Who should choose a secured loan?
Secured loans allow you to borrow more and repay over a longer period than a personal loan – up to 25 years. They can normally be used for almost any purpose and as the lender has the benefit of security they can be offered to people who may be excluded from other loans. Borrowers who are self-employed, have recently changed jobs or have previous credit problems will be considered for a secured loan. They are also useful for borrowing larger sums or where the applicant requires a longer repayment period.
More information about secured loans
To discuss whether or not a secured loan would be best for you please contact us.