A secured loan simply means a loan that is secured against your property by way of a second charge more commonly known as a second mortgage.
Secured loans are used to raise money for a whole host of purposes, however some lenders place restrictions on what you are going to use the money for.
With Secured Loans expect the rate of interest to be higher than your mortgage and consider also the associated costs. Ask an Obligo MortgageExpert for more details.
More and more UK homeowners are taking a secured loan to raise capital but like all borrowing you should consider it carefully. It’s easy to spend but takes years to pay back!
Secured loans are not nearly as much hassle as most people think – but at the same time both have pitfalls if you don’t know how to navigate your way through the different lenders. Even with the big high street names, one slip of the pen on an application can signal trouble even if you have an A1 credit profile. One lenders rules do not apply to others and you would be amazed at the minor details that make a big difference to the outcome of your application.
Many loans brokers and price comparison websites make a big deal of the lowest rate, or best deal, but don't forget that the best deal or lowest rate is irrelevant if you do not meet the lenders rules.
With secured loan applications you can employed, self employed, on a contract, or with bad credit although the interest rate will vary according to your circumstances.
