SECURED LOANS PERSONAL LOANS
One question that is often asked is ‘what is the difference between a secured loan and a personal loan?’. It is a very valid question as the terminology can be confusing.
A personal loan is often termed unsecured borrowing. This means that the lender is lending the money based purely against the borrowers credit profile, there is no other security for the lending. This means that personal loans tend to be for smaller sums of money, with the debt repaid over a short period of time.
In contrast, as a mortgage payer, a secured loan is secured against the equity in your home. This offers a good level of security to the lender, giving them the comfort to lend up to £250,000 over terms of up to 25 years.
As the deal is based upon the equity in your property, secured loans are available to you even if you have a less than perfect credit history. You will also find that the APR on a secured loan will be more attractive than when compared to an unsecured personal loan.
Personal loans are great for small purchases; whereas secured loans are perfect for larger purchases, or to be used for home improvements.
Many UK mortgage payers have found that secured loans are perfect for consolidating other debts, such as personal loans and credit cards, providing one manageable monthly payment.
To find out how much you could borrow and to find out how low your monthly payments could be, simply call us or click ‘Get a Quote’.
