People borrow money for various reasons, and there are various ways in which to do it. The reasons for borrowing can be split into two broad categories: expenditure and investment purchases.
Expenditure means borrowing money in order to purchase things for your immediate enjoyment - a holiday, new furniture, clothes or shopping bought on a credit card.
Investments can be more long-term - improvements to your home perhaps, or a new car. Perhaps you need to extend your property, due to a new arrival needing a nursery, or an old arrival - building a 'granny flat' in the garden.
Secured loans are handy for these types of purchases. Provided you have a mortgage, a secured loan can allow you to borrow a larger sum of money than an unsecured loan can, usually with lower interest rates and over a longer period of time. So if you want the latest car on the market, or a new conservatory, consider looking at secured loan lenders.
If you use secured loans for home improvements, it can have an added bonus. Adding certain features to your home, such as a downstairs bathroom, conservatory, garage or a bigger kitchen, can add thousands to the market value of your property, making a secured loan more of a wise investment than just a way to get your new en-suite.
Always remember, when taking out a secured loan, that your house will be put up as collateral, and you could risk losing it if you miss payments to the point of default.
