Secured Loans.
When you apply for a secured loan, you will have some collateral as security against the money you borrow. In most cases, this will require the borrower to use their home, whether mortgaged or owned outright, as the security against the loan.
The purpose of a secured loan can be for a variety of reasons, from debt consolidation to home improvements. It is possible to borrow amounts of up to £100,000, however, figures of between £3,000- £50,000 are the norm. The repayment terms are agreed at the outset, which is usually between three and twenty five years. If you want to pay your loan back earlier than the term agreed, penalty charges may be incurred.
Interest is charged on the amount that you borrow at an annual rate (APR). The total that you can borrow, the APR and the term are dependent upon the equity that you have in your property and your ability to repay the loan based upon your personal financial circumstances.
Generally, secured loans are easier to obtain than unsecured loans. This is because of the benefit of security, which provides protection. This enables the self-employed; those with adverse credit and people who have recently changed jobs to successfully apply for a loan