If you already own a home via a mortgage loan and want to take a further mortgage to raise some cash, then it is known as mortgage equity release. This is also known as second charge mortgage or a secured loan.In June, the house prices have rose again by around 1.1%. This makes the annual house price increase to an average of 11.1%. This is why the mortgage equity release has become so much popular in the UK.
The average UK home currently has a worth of £ 200,000 and for every 1% rise and extra £ 2,000 is available value of your home. It has been seen that with the rising house prices, the homeowners had saved less and spent more.
Though, how to spend that amount of money is up to the borrowers. However, it is advisable that the borrowers should not spend the money extravagantly.
Apart from borrowing a good loan amount, secured loan comes with longer repayment term and lower APR (Annual Percentage rates). In addition to this, people with a bad credit history can also avail a secured loan, if they fulfill the desired loan criteria of the lenders. The presence of the collateral with this loan type makes it less risky. That is why they offer secured loans to the people with such credit scores.
However, before going for this loan option, you need to compare secured loans with different lending institutions of the UK. Though, you can approach high-street banks, or the building societies for procuring a secured loan. But due to the stiff competition among the private lenders, they are offering loans at competitive rates.
Source: http://EzineArticles.com/?expert=Harish_Pachori
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