Secured loans – smart borrowing for homeowners

by: David Lynes - Loans4

When it comes to borrowing money homeowners have a valuable added advantage over non-homeowners, and this is the ability to borrow against their home. In the past people have been a little nervous about secured loans simply because of their secured nature, but as equity levels have increased over recent years an increasing number of homeowners have realised that a secured loan is actually a smart and effective way to borrow money for those that are lucky enough to have a property with equity in it.

Although homeowners that have good credit ratings will usually find that they are able to take out an unsecured loan rather than a secured loan if they wish, there are actually many benefits to opt for the secured loan over the unsecured one. The fact that the loan is secured means that the lenders is able to offer better value and many secured lenders will also consider those with bad credit, whereas the doors of most unsecured lenders are closed in the face of anyone with bad credit.

One of the main benefits of a secured loan is that the borrower is often able to take out a far larger loan than with an unsecured loan, although the amount that you can borrow will be determined by factors such as your income, your equity levels, and your credit rating. Another benefit for borrowers is that the repayment periods offered are far longer than with an unsecured loan, with repayment terms of up to 25 years available on most secured loans subject to eligibility. This means that you can keep your repayments to a minimum, thus increasing affordability and ensuring that you do not overstretch your monthly finances.

Whatever you need to borrow money for you will find that a secured loan is an effective and affordable way to raise the money that you need. You can use a secured loan for all sorts of purposes, so whether you want to consolidate your higher interest existing debts or whether you want to increase the value of your home by making some home improvements, a secured loan could be the ideal, smart choice.

There are many lenders that hare able to offer competitive secured loans, and all you need to do is compare a range of loans to find one that suits your needs and offers a competitive rate. Alternatively, you can use a specialist broker, who can use your application details to source a number of reputable secured loan providers in order to get the best loan and rate for your needs and circumstances. This can save you the hassle of making individual applications, and can help to ensure that your secured loan is the right one for you.