Secured Loans - the Basics

By: J Tillotson

If you're planning on redecorating in the new year, or fancy a holiday after putting up with the in-laws during the festive season, you may be wondering how to afford it after all the christmas presents you've had to buy. If you're a homeowner, you may want to consider a secured loan to raise the funds.

A secured loan is secured against your home, and is calculated by deducting the balance of your mortgage from the market value. They are also referred to as homeowner loans.

The amount you can borrow on a secured loan will vary. Some lenders will only let you borrow up to the equity amount - the difference between your mortgage balance and the current market value, some will let you borrow over this. There are some who will only loan you a percentage of the equity. A lot depends on your credit rating, income and current financial status.

When considering a secured loan, it's always best to compare a number of deals from different providers. Take into account the repayment duration - some secured loans can be taken out over a longer period than a standard loan. Check the interest rates, terms and conditions, and whether there is a penalty for early repayment.

The good news is, secured loans are more accessible for homeowners with bad credit ratings, as the use of your home as equity gives the lender more security, so they are more likely to take the risk with you. The money you borrow can be used for many different things, a new car perhaps, or home improvements, or even consolidation of current, smaller debts.

Secured Loans
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Secured Loans