Posts Tagged ‘Why Secured Loans’
Why A Secured Loan?
Tuesday, March 24th, 2009A secured loan is a loan that is secured on a property or an asset. 20 years ago it was very rare for anyone to take out a secured loan with any lender as it was seen as a “last resort” and a desperate measure. Now however more and more people are known to take out secured loans to clear debt, improve their home, go on holidays, and even to buy a new car. Secured loans are not now seen as a “last resort” or a desperate measre for someone to get of credit. It is now known as a cheaper way of borrowing, or even a way or borrowing a large sum of money from one lender. Most secured loan lenders will lend up to and even over £75,000, subject to terms and equity.
In the past there were secured loan plans out where you were able to borrow up to 125% of the value of your home. Now however you can get a maximum of 95% if you have a good credit history, proof of income, and are not already over indebted with other lenders. Most lenders will also want to know what the money is for. Gaining a 95% ltv (loan to value) secured loan is alot harder than it used to be. Now because of the current market conditions in the UK and Europe, many lenders are askign for more information, and proof fo that information than they used to, they are also being alot stricter on their cut-off on the credit checks too.
Although secured loans are harder to get due to the value of houses decreasing, and lenders tightening up their belts, it is still possible to obtain a secured loan, some of them with good rates too. For more information on secured loans, remortgages, credit cards, or life insurance, Advanced Finance Limited can help.