Secured Consolidation Loan
Is a secured consolidation loan right for me?
- Yes, if you are looking to - reduce your monthly outgoings - speed up repayment of several debts with one creditor - change lenders for better interest rates - to settle an Individual Voluntary Arrangement (IVA).
- No, if you have - used a consolidation loan unsuccessfully before to consolidate an older loan - if you intend to free up credit and store cards that you need to continue using as part of your normal monthly budget - if you are unsure you will be able to maintain the repayments.
With a secured consolidation loan, your debt is restructured into one low, affordable amount that you agree to pay. The new loan is secured against your assets, normally any property that you own.
Secured Loans work on the principle that the borrower gives the lender security against the loan.
This security is usually a property belonging to the borrower and will be in the
form of a charge against the property. If the property is already subject to a
charge, because it is already mortgaged, the security will take the form of a
second charge, which can be claimed when the first charge has been satisfied.
Secured Loans do not normally come with strings attached and can usually be used
for debt consolidation purposes. They can be for varying amounts, from as little
as £3000 up to £50000. The term for repayment is variable and can be set from
between 3 years and 25 years, but penalty charges can sometimes apply if you repay
your loan early. Monthly repayments will vary depending on the amount borrowed,
the term of the loan and the interest rate charged. Personal circumstances such
as your credit worthiness will influence the lender and determine how much they
are prepared to lend and over what time period. It is advisable to always compare
two or three different providers to be sure that the loan you are offered is the
most competitive available.
Secured Loans are often easier to achieve than unsecured loans because of the
extra security a property charge gives to the lender. This extra security has
the added advantage of allowing people with adverse credit or people who are self
employed the opportunity to borrow money when an unsecured loan is unobtainable.
Debt Help UK are able to introduce you to selected financial institutions to advise you on the best loan available for your particular circumstances. These companies are obliged to be completely transparent about their rates of interest, their fees and charges.
Call free on
0800 088 7502 to find out more or get help with applying for a Secured Loan by filling in the form below.
