How To Ensure You Get A Cheap Secured Loan
If you want to find a cheap secured loan it is a good idea to compare secured loan deals from different providers with each another.
A cheap secured loan is suitable for homeowners only, whether the property is owned outright or mortgaged. You can use the money for anything from a new car or home improvement or to consolidate existing debts. However your property may be at risk if you fail to keep up with repayments on the loan. This is why an advert for a cheap secured loan will include the warning "Your home may be repossessed if you do not keep up repayments on your mortgage."
There are a huge variety of loans on offer, so it is important to shop around to ensure you get a cheap secured loan. When looking for a cheap secured loan there are a number of factors to take into account. These include the interest charged on the loan (APR), the cost of payment protection insurance (PPI), early repayment charges or penalties, how long the application process will take and eligibility for the loan.
Speak to a Broker
To find a cheap secured loan it is a good idea to speak to a broker. Loans are offered by banks, building societies and specialist loan providers but a broker will sometimes have access to a cheap secured loan not sold directly to the public. If you use a broker they will need some information from you. This includes; how much you want to borrow, the time period over which you want to borrow it, whether you have had credit problems in the past, the value of your property, the equity in your property, the value of the mortgage or other loans secured on your property, and the purpose of the loan.
If you have had credit problems in the past - such as missed payments, bad debts or county court judgements against your name - you will find it more difficult to get a cheap secured loan. You will be able to get a secured loan for someone with adverse credit but this will cost more than a cheap secured loan.
The amount borrowed on a cheap secured loan is repaid monthly over a term agreed at the outset, usually between three and 25 years. Lenders charge interest on the amount you borrow - 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.
Typical Rates
Quoted APRs on cheap secured loan 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.
When looking for a cheap secured loan it is a good idea to look at the 'Total Amount Repayable' (TAR). This adds up everything that you will have to pay back, including all monthly repayments, fees and charges.
