UK Personal Secured Loan
A UK personal secured loan allows people to borrow money by cashing in on the value of their home, property or other valuable asset. Having collateral makes it easy to obtain cash quickly though a UK personal secured loan.
A UK personal secured loan is a way to obtain necessary cash even if a home owner has bad credit, is involved in an Individual Voluntary Arrangement (IVA), has County Court Judgments (CCJ) or is in arrears with their current mortgage payments. Unlike a tenant or person without collateral, the loan is secured on the value of an asset. Repayment of the loan is ensured because the asset may be seized due to failure to make timely, regular loan payments.
There are many benefits to obtaining a UK personal secured loan. People choose these loans because:
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- Often there are no fees and legal bills incurred as a result of taking a UK personal secured loan. Sometimes there are prepayment penalties to refinance or excessive fees for attorneys, evaluations and closing costs.
- Bad credit will not hold back a borrower from getting a UK personal secured loan. A loan can even be extended when the current mortgage is in arrears. There is a UK personal secured loan program to suit almost anyone.
- UK personal secured loan programs close quickly and fund are available within a couple of weeks. Refinancing can take several weeks and involves taking out a completely new mortgage.
- Taking out a UK personal secured loan allows borrowers to have a longer period of repayment than taking out an unsecured loan. Secured loans may be taken out for anywhere from five to thirty years.
- For home owners, a UK personal secured loan often allows the borrower to take out a loan for the total equity available in the residence. Some secured loans even allow the home owner to borrow up to 125 percent of the value of the residence.
A personal secured loan may charge a fixed rate of interest and an adjustable rate of interest. The type of loan a borrower qualifies for depends on their credit rating, the amount of available equity in the residence, the amount of collateral the loan is secured on and the borrower’s income. Sometimes the rates are a bit higher than a standard mortgage, but the a UK personal secured loan funds more quickly and involves less closing fees. Recent Bank of England figures showed that because the value of homes is continuing to rise, people are getting more equity from their residences and more secured loans are being extended to borrowers.
Getting a secured loan is definitely becoming increasingly popular. According to a recent survey conducted by the Association of Finance Brokers (AFB), more mortgage salespeople are offering secured loans than ever before. Robert Sinclair, the director of the AFB, stated that mortgage brokers, “are increasingly using secured loans as an appropriate part of their advice to customers.”
People who obtain personal secured loans can use the proceeds for a variety of different reasons. Many folks decide to pay off unsecured debt, such as credit cards, that are charging a higher interest rate. By taking out a personal secured loan, borrowers pay off high interest debts and improve their credit rating. Nationwide has predicted that the price for homes will increase anywhere from five percent to eight percent over the year 2007, showing that equity continues to build in residences in the UK. This equity can be used to resolve unsecured debt and lower monthly payments.
A UK personal secured loan can be used for many other purposes, such as paying for a wedding or college, going on a dream vacation or purchasing a new car. Consider that recent research conducted by Unbiased showed that around four million parents have loaned money or intend to loan money to their children to purchase their homes. Taking out a personal secured loan can even give parents money to offer their children to get started in their own residence.
Because UK personal secured loan programs offer money in a short period of time, they can also be used to make emergency home repairs, such as replacing a heating system. Perhaps unexpected family medical bills have come up. A personal secured loan makes the necessary funds available in less time than any other loan program. Rather than keeping equity and collateral dormant, a borrower can take advantage of having the money right away. Sometimes this money can make a major difference in obtaining health care or keeping a residence running properly.
For people who own a home or other property with collateral, a UK personal secured loan is a simple way to get cash. Whether a borrower needs money to make home repairs or repair their credit rating, a personal secured is the answer. Without having to refinance or apply for high interest, unsecured loans, a borrower can easily get funds. There are even online programs that allow a potential borrower to review current programs, interest rates and apply over the Internet for a quick answer.