The name easily clarifies that secured home loans are secured on borrowers’ property. These loans allow borrowers to borrow the amount ranging from £5000-£75000. The repayment period of these loans is flexible and decided on the basis of lending amount. Usually it is seen that secured home loans are given for 5-25 years.
The most beneficial feature of secured home loans is the lower interest rate. Since, these loans are secured on borrowers’ property; hence, lenders do not mind to offer these loans at a better rate of interest. Besides, a high valuable security ensures borrowers to borrow up to 125% of the value of their security.
Secured home loans however are available with two options; fixed rate options and variable rate options. In case of fixed rate option, borrowers need to pay a fixed amount during their loan term, while in variable rate options; the rate of interest varies in accordance with the changes of loan market. Besides, secured home loans are available with balloon rate options and capped rate of interest options.
The usages of secured home loans have increased the popularity of these loans. These loans can be used for various purposes. These are like,
- For improving home
- For paying off debts
- For making holiday trip
- For covering wedding expenses and so on.
But borrowers are advised to judge their repayment capacity before apply for secured home loans. Many a time, borrowers borrow amount without judging their repayment capacity, therefore, many borrowers face the risk of collateral repossession. So, individuals are advised to borrow the amount that matches their financial condition.
1 comment:
Low interest rates, lesser repayment duration etc etc. Secured home loans look good from the outside and indeed it is but like the author here voiced his/her opinion about the judgement of the amount of the loan that you require, that's right on the target.
It is easy to get carried away and get more cash but that means that one mistake and you will end up loosing everything. That's a disaster that you do not want. You have got to make sure that you do not get carried away. Borrow less but borrow the amount that you can easily repay. Make informed decisions before applying for a loan. Internet is one of the best ways to educate yourself. Use your favorite search engine to find websites like bad credit loans where you can easily and quickly find all the information, tips, resources and links to lenders with the best deals in town.
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