Guide to Personal Secured Loans

Here is a useful guide to personal secured loans. A personal secured loan is the generic term for a loan. A personal secured loan is secured against your home to act as security to the lender for the money you have borrowed.

A personal secured loan is often referred to as a homeowner loan. Personal secured loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount.

Personal secured loans have a range of distinct benefits over other types of borrowing. Because of the lower risk to the loan provider, they pass on reduced interest rates to borrower.

However, they've got more to offer than just attractive Annual Percentage Rates. Today personal secured loans come with all sorts of flexible repayment terms that will make it easier for you to repay, so it's important to read the small print.

Clauses to keep an eye out for include: 'payment holidays' whereby you can halt repayments for an agreed period of time, and favourable redemption charges - so you won't be penalised if you want to pay the loan back early.

As a homeowner, you start out with an advantage, namely, the equity on your home. No matter what the purpose of your loan, as a homeowner, you enjoy low rates because your property is offered as collateral.

You could use your personal secured loan funds to make home improvements that would drastically improve the value of your property. Or you could use it to buy a new car or even for a vacation; there is no restriction on the purpose of your loan.

A personal secured loan is the perfect way to borrow between £5,000 and £75,000 at a low rate. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you.

Personal secured loans can be spread over a much greater time frame than unsecured loans. This gives them greater flexibility. Loans secured on property can be repaid over a period of between 5 years and 25 years.

The application process is a lot longer with personal secured loans than with unsecured loans, due to the fact that your loan provider will need to value your home.

The primary advantages of a personal secured loan are that:

They offer lower interest rates. Because the loan is secured and the lender is guaranteed to recover their money in almost any circumstance the APR (the interest rate) tends to be less than with an unsecured loan.

The circumstances in which one is able to secure a loan on property are more dependent upon the equity in the property rather than past credit history and hence individuals with adverse credit histories (such as County Court Judgements and credit card defaults) are not excluded from secured lending.

A personal secured loan represents an efficient debt management tool because it is possible to spread payments to a term of up to 25 years, it is therefore possible to consolidate any existing borrowing and reduce the monthly outgoings to such an extent that considerable extra income is made available to the household budget.

The majority of personal secured loans can be arranged without fees therefore the personal secured loan often represents a cheaper lending option than a remortgage due to the fees usually associated with the remortgage product.

They are easier to be approved for.

In a typical personal secured loan, the home is used as collateral against the loan, meaning that should you be unable to maintain the loan repayments, your home will be at risk.

You may freely reprint this article provided the author's biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Faxless Payday & Cash Advance Loans - Fast Cash, No Faxing Loans, The Easiest Payday Loan Process

If you are in a hurry for a payday loan,... Read More

Finance Your Home Business: Six Ways Under Your Nose

There are lots of ways to get additional capital to... Read More

The Best Day of The Week For Payday Loans

Whether your payday arrives every Friday or every other Friday,... Read More

A Guide to Getting a Debt Consolidation Loan UK

If you're getting in over your head with credit, you... Read More

A Guide to Looking for Cheap Online Loans

Cheap online loans may seem hard to come by, but... Read More

What Is A Second Mortgage?

A second mortgage is a loan that is secured by... Read More

Used Car Loans - 3 Tips For Financing Your Used Vehicle Online

Financing the purchase of a used vehicle can be done... Read More

Payday Loans - Ways to Keep Your Costs Low

Payday loans offer a fast and easy solution to financial... Read More

Loan Options for College Students

You just finished high school and realize you have two... Read More

All About Bad Credit Secured Loans

Bad credit secured loans are a relatively recent addition to... Read More

Fast Cash Advance Payday Loans - Convenient to Use Online

Online cash advance companies offer a convenient and speedy application... Read More

Cash Advance Loans Online - A Great Way to Make it Until Your Next Pay Day

A payday advance is a loan obtained to cover unexpected... Read More

Why Choose a Personal Loan?

Are you wondering why choose a personal loan? One of... Read More

Holiday Loans Can Expand The Horizon Of What You See

Why do kids get all the breaks? Winter-weary adults, fed... Read More

User Guide to Payday Loan Terminologies

Are you approaching towards a payday loan cash advance? Is... Read More

Risk It With A Bridging Loan?

How many times have you been casually going about your... Read More

What Are VA Loans?

VA loans are basically mortgages or home loans geared towards... Read More

Car Loans After Bankruptcy - How Poor Credit or a Recent Bankruptcy Can Affect Your Loan Approval

If you have poor credit or a recent bankruptcy, you... Read More

Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

Like most of the contingencies (the after effects of unemployment... Read More

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel... Read More

Shopping for a Payday Loan

You wouldn't consider buying a new pair of shoes, a... Read More

Compare Payday Loan or Cash Advance Lenders Online Before You Borrow

Comparing payday loan lenders, also called cash advance lenders, online... Read More

No Credit Check Payday Cash Advance Loan - Benefits to Using a Payday Loan

No Credit Check Payday Cash Advance Loan - Benefits to... Read More

Demystify the Allegorical Misinterpretation of Bad Credit Personal Loans

Every time you go for a loan, the bad credit... Read More

A Heavenly Wedding - Courtesy Wedding Loans

You always dreamt of walking down the aisle in style.... Read More