You may be having a wedding in the family or an exorbitant bill to pay. Given the crisis scenario, you may not have the luxury to parse through different lending options, especially if your credit rating is poor. Secured loans help in immediate funding needs. In a secured loan, you can use your personal assets as collateral—it may be your home or funds in a savings account.
Secured loans come with additional advantages such as lower interest rates and longer repayment period than unsecured loans. However, the lender decides on the amount to disburse based on many factors, including the available equity in your home, the property worth, and other outstanding obligations.
Calculating an estimate of your home’s market value may not differ between various lenders, but the entitled lendable amount may vary. It is always best that people applying for secured loans have at least 30-40% equity in their home, or about half of the home loan repaid. There are many online resources to assist in estimating the property’s worth, applicant’s eligibility, and loan admissibility. In most cases, applicants would be eligible for 90% of their home equity.
Secured loans are, however, subject to market forces. Competition has ensured that rates change regularly. It is best to check out on the best available lenders in the market by comparing their rates and terms, so that you do not end up borrowing from the wrong type of lender. Remember, your home is at stake when you go in for a secured loan, but there are a few understanding and compassionate lenders who are willing to give you an opportunity should you require one.
GPS Finance provides loans ranging from £3,000 to £1,000,000 secured against a prime residence property for a flexible term of up to 25 years. This is a boon for individuals from different backgrounds, including self-employed and pensioners, to rise funding with a secured loan. Secured loans may have either variable or fixed rates, and some lenders may also allow you to make over payments or settle the loan without any penalty.
Remember to choose the lender that suits your ability, is flexible, and is helpful. If you intend to apply for a secured loan, get in touch with us.
- 18 Jul, 2019
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