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373

Summary:
Secured Loans UK taken out against a property that is owned outright are called first charges, whereas those taken out against a property with an outstanding amount left on the mortgage are known as second charges.


Keywords:
secured loans, secured loans uk


Article Body:
Lender who offers Secured Loans UK requires the borrower to provide some sort of guarantee for the loan to be reclaimed, if regular repayments are not met. In most cases this guarantee is made on the borrower’s property, therefore only home owners are eligible to apply for secured personal loans. Secured Loans UK taken out against a property that is owned outright are called first charges, whereas those taken out against a property with an outstanding amount left on the mortgage are known as second charges. This is because if repayments are not met and the loan company needs to reclaim the property to recover the remaining unpaid loan amount, the mortgage company have first claim on any equity released and only then will the loan company be able to take the funds they are owed. The amount available on a Secured Loans UK tends to be larger than that offered through an unsecured channel; this is because the lender has a guarantee that one way or another they will be able to reclaim their funds. Loan amounts may be anything up to 125% of the value of the secured property but tend to be between £3,000 and £100,000, although a higher amount may be possible. The interest rate applied to a Secured loans is dependent on the amount borrowed, the value of the property against which the loan is secured and the personal circumstances and credit history of the borrower. Although interest rates are likely to be higher for those with a poor credit history, in general, Secured loans companies (especially those who specialize in bad credit loans) are more willing to lend to individuals who fall into this category because of the security provided. This also applies to others who may find it difficult to obtain unsecured credit including the self employed and those who work on a contract basis. For Secured loans you need to offer collateral as the security, which will help you to get the best Secured loans quote. So don’t waist your time for compare online and choose from other list of Secured loans lenders and get one of the best loan quotes for secured, home owner or any purpose loans in UK that is Secured Loans UK.