Secured Loans in UK

By: Adam Jaylin

According to a news report from BBC, the house price in the UK market is rising rapidly. In past ten years the UK homeowners have borrowed around ? 264bn against the equity of their home.

Some experts think that borrowing a loan amount against your home is not a good idea. They believe that due to rising house prices, many homeowners are saving less and spending more.



However, some have different opinion in this regard. They consider the numerous benefits associated with a secured loan. The first and the foremost with this loan type is that it comes with lower interest rates. Now, this helps the borrowers in having lower monthly outflow on their existing loans. Secondly, the borrowers like to pay lower repayments for a longer period of time. Moreover, it can be said that, it is a viable way to save significant money from your monthly outflow.

Last year there was a 10 percent increase in the house prices. So, taking a loan on the value of the home is becoming popular. The average cost of a home in UK is around ?200,000. So, you can imagine that for every 1 percent rise, you can borrow ? 2000 more. This is a good thing for the homeowners as they can avail a larger amount from their home. However, it is advisable that this loan should not be spent extravagantly.



The lenders can offer you a loan amount up to 125 percent of the equity present in your home. As you can borrow a higher loan amount with this loan type, you can meet most of your needs and requirements in a better way.

People may have different opinion for a but it is a fact that it is the cheapest way to borrow money.

Home Loans
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