With UK consumer debt now well past the £1trillion mark, and fast approaching £1.5trillion more and more UK homeowners are considering turning to secured loans in order to raise the necessary finance required to manage their debts.
With the Bank of England announcing four interest rates since August 2006, taking the base rate of interest to 5.5 percent the attention being paid to secured loans has intensifies further still.
This is because many banks and lenders, in light of the rate increases, have been quick to act in hiking up the cost of the mortgage and personal loan deals. An increase in the mortgage and loan rates means more people are now being rejected when applying for them as methods of refinancing their existing debts. The high interest rates that are charged on credit cards also rules them out as an option for medium to long term borrowing.
So with secured loans becoming an increasingly more appealing option the question to ask is are they the right choice?
If you’re a homeowner needing to take on additional borrowing balance your finances you may well have considered a secured loan. This form of finance can provide several benefits including:
• Borrowing a larger amount of money – some secured loan lenders are willing to consider loans up to £100,000
• Borrowing over a longer period of time – many lenders will allow you to take out your secured loan for periods of up to 30 years which can help lower your monthly repayments.
• Increased acceptance and lower rates – it is generally easily for a homeowner to be accepted for a secured loan that other types of borrowing due to the security involved and with personal loan rates rising there is now little difference between the interest rates of secured and unsecured deals. You can perform a web comparison of secured loan rates to get an idea of what is available to you.
Despite these benefits secured loans do have their drawbacks, the most important being that the loan is secured against your home which you could lose should your personal circumstances take a turn for the worse.
If you think a secured loan maybe right for you take advantage of price comparison sites to compare UK secured loans, this can help work out how much this type of finance will cost you. Most importantly always seek advice from an independent finance advisor before committing to a secured loan.
Source: http://www.articlesbase.com/loans-articles/is-a-secured-loan-right-for-you-197681.html
With the Bank of England announcing four interest rates since August 2006, taking the base rate of interest to 5.5 percent the attention being paid to secured loans has intensifies further still.
This is because many banks and lenders, in light of the rate increases, have been quick to act in hiking up the cost of the mortgage and personal loan deals. An increase in the mortgage and loan rates means more people are now being rejected when applying for them as methods of refinancing their existing debts. The high interest rates that are charged on credit cards also rules them out as an option for medium to long term borrowing.So with secured loans becoming an increasingly more appealing option the question to ask is are they the right choice?
If you’re a homeowner needing to take on additional borrowing balance your finances you may well have considered a secured loan. This form of finance can provide several benefits including:
• Borrowing a larger amount of money – some secured loan lenders are willing to consider loans up to £100,000
• Borrowing over a longer period of time – many lenders will allow you to take out your secured loan for periods of up to 30 years which can help lower your monthly repayments.
• Increased acceptance and lower rates – it is generally easily for a homeowner to be accepted for a secured loan that other types of borrowing due to the security involved and with personal loan rates rising there is now little difference between the interest rates of secured and unsecured deals. You can perform a web comparison of secured loan rates to get an idea of what is available to you.
Despite these benefits secured loans do have their drawbacks, the most important being that the loan is secured against your home which you could lose should your personal circumstances take a turn for the worse.
If you think a secured loan maybe right for you take advantage of price comparison sites to compare UK secured loans, this can help work out how much this type of finance will cost you. Most importantly always seek advice from an independent finance advisor before committing to a secured loan.
Source: http://www.articlesbase.com/loans-articles/is-a-secured-loan-right-for-you-197681.html
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