Secured Loans: Best Way to Seek a Higher Loan Amount

By: Adam Jaylin

If you are a homeowner in the UK, you can very well borrow a loan amount on the equity present in your home. With the rising cost of the property prices, the homeowners are taking secured loans for borrowing a huge loan amount.

The lenders can offer you a loan amount up to 125 percent of the equity present in your home. The secured loan amount varies from ? 5000 to ? 250000. With such a big loan amount, you can use it for meeting your needs in a better way.

Nowadays, many Britons are seeking a secured loan for renovating their home, like fitting up new bathrooms and kitchen or instalment of double glazing. Moreover, it can also be used for the purpose of wedding or consolidating your multiple debts or for any other needs where you require huge amount of cash.

The repayment term with a secured loan is longer as compared to an unsecured one. The lenders usually offer 5 to 25 years as the repayment term. Since, the loan tenure is longer in this case, the lenders offer a variable rate of interest.

With a variable rate of interest, the APRs (Annual Percentage rates) can go up and down during the loan tenure. The MPC (Monetary Policy Committee) of the Bank of England determines the base rates. The base rates can vary in order to keep the inflation under control.

People whose credit history is less than perfect can also apply for a . A bad credit history could be anything like missed payments, defaults, County Court Judgements or bankruptcies. You would also get an opportunity to improve your credit score with this loan option.

A comparison analysis is required in order to seek a loan on better terms and conditions. You should check out the rates with different lenders like high-street banks, building societies and the private lenders before option for a loan. It is also advisable to read the loan agreement carefully at the time of availing a loan, as you have to follow the terms and conditions written over there.

Secured Loans
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