A secured loan can be used for any purpose be it consolidation, home improvements or that holiday you have always wanted. With a secured loan you will know exactly what your monthly payment will be. No more juggling multiple repayment outgoings for those existing credit cards, personal loans or hire purchase agreements as these will be consolidated within your secured loan. What’s more, by consolidating your existing credit, you could lower your monthly outgoings, freeing up more of your income.*
You might be thinking about taking a secured loan to make home improvements. This could make extra space for a growing family and could even add value to your home.
Secured loans are different to personal loans because they use your home as security, sometimes known as homeowner loans. Because of this extra security, secured loans can be found to have a lower rate of interest than personal loans. They can be for a larger sum and taken over a longer term than personal loans.
In order to apply for a secured loan you would have to own your own home and have an existing mortgage in place. Because mortgages sometimes hold an exit penalty, a secured loan is ideal for borrowing additional funds without paying a penalty you would otherwise have to pay on a remortgage.
* Consolidating your debt may increase the amount you pay back overall and extend the repayment period for your debts.
Secured and unsecured loans are not regulated by the FSA.