Secure Loans – Use Your Property Equity to Get Fast Cash

Adam Brand Adam Brand | Operations Director

A secured loan from a reputable lender can really make a difference in your life. It can provide the necessary cash to do things you would not otherwise have the money to do. What's more, favourable terms allow you to borrow large sums of money over long periods. However, in order to secure loans of this type, you need something to back your signature as collateral for the debt.

There is a big difference between secure loans and unsecured loans: one requires collateral while the other does not. Unsecured loans are things like cash advances, payday loans and the credit extended by credit cards. These are considered unsecured because lenders trust consumers and their promise to repay when issuing a loan. A secured loan product is decidedly different.

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With a secured loan, you are putting up some sort of personal, tangible property as collateral. In most cases, this will be your home. By putting up your home as collateral, you are giving the lender permission to repossess and sell it should you default on the loan. In that sense, such loans should be obtained with caution. You must be very careful not to over extend yourself.

The Power of Equity

When consumers secure loans based on using their homes as collateral, they are actually cashing in on the equity they have built up. What is equity? It is the difference between what you owe on your mortgage and what your property is worth. Let's just say you own a home that would sell for £200,000 on the retail market. If the balance on your mortgage is £175,000, you have £25,000 back with you.

You might be able to secure a loan against that £25,000 if you have good credit and the ability to repay at a   reasonable rate. If your credit is not as good as it could be, you may only be able to borrow £20,000 or less. A lot of it depends on your individual circumstances.

Get Money Fast

As far as loan products go, a secure loan offers many advantages from other types of credit. Among those advantages is speed. With enough equity and a good credit history, you can get the money you need fairly quickly. Some companies offer decisions within minutes and cash the very same day. Obviously, you need to shop around to determine which lenders offer the fastest money.

Lastly, remember there is a lot to consider before you sign on the dotted line. There is more to it than just speed and the lowest interest rate. You also have to consider other things such as the total cost of borrowing and the loan term. It is important that you only agree to a loan with a monthly payment you know you can afford. If you default on your loan, you could very well lose your home.

Fortunately, there are dozens of lenders in the UK from whom you can secure loans using your property as collateral. Take advantage of the options by comparing as many lenders and products as possible. Look at things like standard APR, representative APR, loan-to-value ratio, and the maximum amount you can borrow. All of these things play into determining how much you will pay on a monthly basis.

As a Free alternative to spending days and days researching and comparing available offers why not use our expertise? Our team of secured loan experts have access to a whole of market panel of the top UK lenders covering the high street names and specialist lenders that you have probably never heard of. Within a few minutes we can provide you with a list of the best deals that suit your personal circumstances and help you compare the deals side by side.

If you are happy with a particular offer our experts will show you the full costs of the loan before you decide to go ahead with any application. They will then create and submit a fully optimised application ensuring that the lender sees your case in the best possible light.

You can call our team for free confidential advice at any time. We work for you not the lender so your best interests are always at the forefront of what we do.

A secured loan is a powerful financial tool that can enable you to do great things with your money. Use a loan for home improvements, to consolidate more expensive lines of credit, to pay off old bills, or for any other purpose you deem necessary. These kinds of loans can be obtained in fairly large amounts with generous repayment terms. Very few credit instruments provide the power and flexibility of the secured loan.

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