A Complete Guide To The Best Secured Loan UK Products
If you need to borrow money and own your own property, then a best secured loan UK could be for you. The best secured loan UK is secured on your property whether it is mortgaged or owned outright - this means that if you default on repaying the loan you could lose your home.
A best secured loan UK secured against a property that is already mortgaged is known as a second charge, whereas a loan secured against a property owned outright with no existing mortgage in place is known as a first charge.
This is why an advert for a best secured loan UK will include the warning "Your home may be repossessed if you do not keep up repayments on your mortgage."
Are There Any Limits on How Much I Can Borrow?
A best secured loan UK is available in varying amounts and for many different purposes, including debt consolidation. The amount available on a best secured loan UK is usually between £3,000 and £50,000 although some lenders will lend up to £100,000. The best secured loan UK might be offered by a bank, building society or specialist loan provider via their branch network, over the telephone, via a written application or online through their website. Sometimes the best secured loan UK will only be available through a broker. Brokers will have access to a number of loan companies and will help you find the best secured loan UK for your circumstances.
The amount borrowed on a best secured loan UK is repaid monthly over a term agreed at the outset, which will usually range between three years and 25 years. Lenders charge interest on the amount you borrow on a best secured loan UK - this is called the Annual Percentage Rate (APR). The amount you can borrow, the term available and the APR will all depend upon the equity you have in your property, the lender's view of your ability to repay the loan and your personal circumstances.
Quoted APRs on a best secured loan UK will usually be "typical" rates, and these act as a guide only as the exact rate offered will be on an individual basis. Typical rates should be offered to at least two-thirds of the lender's approved applicants.
What Else Should I Know?
Lenders also take into account your credit history and any county court judgements or defaults when you apply for a best secured loan UK. If you have had credit problems in the past you will probably still be able to get a loan but will be charged a higher rate of interest.
When taking out a best secured loan UK you will be asked to sign a credit agreement, which you should read carefully as the terms are legally binding. You will also have to submit documents including ID, proof of residence, proof of ownership of your house and proof of your income.
If you are married or in a civil partnership a lender might insist both parties are named on the best secured loan UK application from. This is because there have been cases in the past where one party took on a secured loan and defaulted - but when the lender tried to force a sale of the property, the other party was able to block it by claiming to be in ignorance of the loan.
