What is a Secured Loan?
A secured loan is otherwise known as a homeowner loan. This type of loan requires that the borrower provide some form of security to the loan lender. This usually means that the borrower's property will be secured against the debt, so that the lender has some form of security when lending the money.
A Secured loan can only be lent to those who already have a home, for those who do not have a property to use as security, then the only loan option is a personal or unsecured loan. If you are looking for a loan to consolidate your debt and have been refused a loan in the past, you might want to consider a debt management plan.
Why Would I Want a Secured Loan?
As the loan is secured against your home, it can offer the borrower some distinct advantages over an unsecured loan. Such as being able to borrow the money over a longer period of time and also possibly at a lower interest rate than an unsecured loan.
It is always important that you make sure you can afford the repayments to a secured loan. If you are struggling with debt and think that you might not be able to afford the repayments, you should never get a secured loan as you risk losing your home. Refused A Loan do offer alternatives such as a debt management plan or IVA.
For free information on secured loans and whether they are the right for your financial circumstances, please contact our expert Refused A Loan team on 0800 048 1769.
LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY. For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.
Refused A Loan is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.