Secured loans are loans that are secured against an asset, typically your home, therefore these types of loans are only available to homeowners.
Being approved for an Unsecured loan is available to both homeowners and tenants, however they are not secured against any asset.Secured loans are available to homeowners only, using equity in your home to use as collateral against the new borrowing. This can often mean that the rates are lower than the unsecured option, and you may be more likely to be accepted having used your equity to “secure the loan. This gives the lender more comfort that the loan repayment will be made, and it's vitality important that you do. Your home is at risk if you do not keep up repayments towards a loan or mortgage secured against it. A charge will be registered against your property in a similar way to your mortgage, and will remain there until the loan has been paid back in full.
It is therefore vitally important to make sure you are comfortable in paying the loan back. Failure to do this will not only lead to a bad credit score, it may lead to repossession of your property if the loan account is not conducted satisfactorily. Think carefully before making the decision to secure any credit against your home. Whilst often cheaper and more accessible, there are dangers if you fail to keep up repayments.
Please read Secured Loan Advantages and Disadvantages before applying.The easy loans company make applying for these types of loans very simple, as you will be able to get a no obligation quotation for any amount up to £100,000 by filling out the online form below.
There are various reasons why people need loans, the most common reasons are home improvements, or to consolidate existing debts.
There are basically two types of loans available – secured loans and unsecured loans. In order to qualify for the former type of loan, the applicant must typically be a homeowner, as the home is usually what is used as security. You should always think carefully before securing a loan against your home as failure to keep up repayments on a mortgage or secured loan may lead to repossession, therefore it is crucial that repayments are made on time.
Unsecured loans, are loan amounts that are not secured against any assets, however it is still important to make sure these loans are affordable as none payment will seriously affect your credit rating, which will mean future borrowing will be difficult.
Whichever loan option you wish to apply for, it is important that you can afford the loan. Easy Loan Company work with lenders that welcome applications from people with a good or bad credit rating. We will look at your current situation in terms of your earnings and outgoings to assess whether you meet the criteria to afford a loan.
There are some things to consider with secured loans;
1.The lender will look to register their security, if against a property usually by placing a legal charge on the deeds by notifying the land registry of their security. This means you would not be able to sell the property without repaying their loan.
2.Secured loans are often for higher amounts and therefore over longer periods than unsecured loans. When taking a loan over a longer period you have to remember that interest is charges over longer meaning the total amount you repay may be higher.
3.If the property is owned in joint names then both people who are on the deeds need to be on the application, if only one person applies with a jointly owned property the lender is likely to decline the application unless both people are added.