Bad Credit Homeowner Loans with UK Lowest Rate Guarantee!

Adam Brand Adam Brand | Operations Director

Affordable bad credit homeowner loans can be hard to come by for individuals with a bad credit history. Lenders are reluctant to offer attractive interest rates and loan terms to customers that present too high a risk. If you find yourself in this position, there is no point in getting angry or upset. Instead, consider the possibility of bad credit homeowner loans based on the equity in your property.

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The consumer financing we are talking about is known as the 'secured loan'. These loans get their name from the fact that the borrower offers property as security. Should he or she fail to make their payments as agreed, the bank could repossess the property and sell it to recover the money. As you can see, this arrangement takes a lot of the risk out of the equation for the bank.

Secured bad credit loans are a great financing vehicle for people with questionable credit histories. What's more, there are almost no limits to what the money can be used for. People use secured loans to:

  • consolidate high interest debt
  • make necessary home improvements
  • pay unexpected medical bills
  • help defray education costs
  • start a new business.

Secured loans are an affordable way to use the equity in your home to meet your long-term financing needs. They look beyond bad credit as long as a borrower has sufficient equity.

Affordable Credit

We appreciate secured loans because they represent a very affordable means of financing. That is why so many people use them to consolidate high interest debt. As an example, consider someone who might have three outstanding credit card balances totalling £15,000. Let us also assume the average rate on all three cards is 12%.

If the consumer paid off each of the cards in 12 months’ time, the total amount paid would equal £16,800. However, what if the consumer combined those three credit card balances into a low-cost secured loan at a rate of 7%? The total amount paid after 12 months would equal just £16,050. That's a savings of £750, just from consolidating high interest debts into a single secured loan.

This example makes it clear that secured bad credit homeowner loans is one of the more attractive forms of consumer lending available today. Between affordability and flexibility, we do not think there is a better way for homeowners to borrow large amounts of money.

Getting Cash Fast

Affordability is just one of the strengths of a secured loan. Another strength is speed. Because you are using the equity in your home to borrow, the approval process is pretty fast. Some lenders provide preliminary approval within minutes of receiving your application, and even when preliminary approval takes longer, it is not unusual for the entire process to be completed in just a day or two. You will have the cash you need for whatever purpose you deem necessary.

We would caution you to be careful about accepting a secured loan offer just because it's fast. Not every loan is a good loan, inasmuch as some lenders charge higher interest rates and additional fees. It pays to compare multiple loan products and lenders before accepting an offer.

Secured Loan Expert makes comparing easy by showing you multiple loan products side-by-side. You will see important points such as annual percentage rate (APR), representative APR, minimum and maximum borrowing amounts, loan terms, and loan-to-value (LTV) ratio. You will want to carefully scrutinise each of these numbers in order to determine which lenders are offering the best deals.

A diligent comparison should enable you to put together a list of three or four lenders worth considering. If you have any questions about the details or need some expert help to compare the different loans available, be sure to contact one of our experts to get free help and advice before you make the application. Remember that every application results in a credit search that goes on your permanent record. Too many searches in too short a time will have a negative impact on your credit rating.

Secured Loan Expert is here to help you make the most of bad credit homeowner loans with a goal of making steps to improve your financial situation. Obtaining a secured loan against your home is a great way to raise the necessary cash and begin the process of repairing your credit.

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