SECURED HOME LOANS
When you take out a secured loan on your home, you are making a financial commitment for a period of up to 25 years, depending on the loan term you select.
A secured home loan is often the cheapest way to borrow large sums of money as the loan is secured on you home; you do, however, run the risk of being repossessed if you do not keep up with the repayments.
A secured home loan is much the same as a mortgage and in fact it is often termed a 2nd mortgage. When you take out a secured loan the lender takes out what is known as a charge on your property. This means that in the event of non-payment of the loan, the lender has the right to reclaim the money due by taking possession of your home. This is also often the case in the event of the death of the borrower.
To ensure that you do not put your self in a position that you could lose your home, you should always take out adequate protection on your secured home loan. The three main areas you should consider are life cover, income protection and critical illness cover.
Quite simply, life cover will repay your secure loan in the event of your premature death, before the end of the loan term. Income protection will provide you with an income if you cannot work due to ill health, accident or involuntary unemployment. As with life cover, critical illness cover will provide you with a lump sum to repay your secured home loan in the event of you being diagnosed with a defined serious illness.
When compared to a personal loan, a secured home loan will allow you to borrow greater sums of money over longer periods of time, allowing you to do the thing you want to immediately. APR rates are designed to help you compare the costs of different types of loans; however, a comparison of a personal loan to a secured home owner loan will not always be accurate due to the higher setting up costs on a secured loan. These setting up fees are generally paid for by the company you organize your secured loan through; Finance Now guarantee not to charge an up front fee.
Secured home loans are only available if you currently own a UK property; secured loans are not available to tenants.
Secured loans remain a firm favorite of UK home owners, giving them the ability to borrow up to £250,000, at competitive APR rates.
