UK PERSONAL SECURED LOANS
If you live in the UK and pay a mortgage, you could be eligible to take out a personal secured loan.
If you are considering improving your home, making a special purchase like a car, boat or caravan, or simply want to consolidate some existing unsecured debts; a personal secured loan could be the answer.
Many UK mortgage payers have found that a secured personal loan is an excellent way of borrowing some, or all, of the money tied up in their homes. Although extending or changing your current mortgage may be an option, many mortgage payers in the UK have found that a personal secured loan avoids the expensive redemption penalties associated with changing mortgage deals.
A personal secured loan is similar in many respects to an unsecured personal loan, with a debt that is repaid over a set period of time. The major differences are that a secured personal loan tends to be taken out for larger sums of money than an unsecured personal loan, and that the secured personal loan is of course secured on the bricks & mortar of your home.
By securing the loan against the asset of your home, you offer the lender a good level of certainty that the debt will be repaid. The benefit to you, is that in return the lender will offer you better rates, a larger loan and a longer repayment period than most unsecured personal loans.
In the UK we have a large proportion of mortgage payers, as this market is so large, the lenders can borrow larger sums from the money markets, allowing them to pass the savings directly on to you in the form of lower interest rates.
On all borrowing in the UK, the rate for comparison is described as the Annual Percentage Rate or APR. This rate should offer a direct comparison between different UK personal secured loans, as it not only takes into account the interest rate you pay, but also all the fees associated with setting up the loan.
