For homeowners in the UK, a range of loans called secured personal loans are available to allow people to borrow larger sums of money. Many people are able to borrow money without the need for additional security, especially if the sums are relatively small, but for UK people who need larger amounts and need to control monthly repayments by spreading the debt over a longer period, the option of a secured loan could be attractive.
The aim of our online secured loan service is to help people understand what these loans are, decide if they are suitable and ultimately find the cheapest secured loans available if they are the right solution.
Although secured loans are sometimes called home loans, it doesn't mean they are classed as purely home improvement loans, these loans can be used almost any purpose including, debt consolidation and vehicle purchase.
They only people who are eligible for secured loans, are those who already have a mortgage on their home. If you own your home outright, becasuse you never needed a mortgage on it or have paid it off, then you can't take out a secured loan. Lenders will refer to your application as a "deeds case". You could however take out a new mortgage on your home if you need a larger sum of money.
The reasons for this are due to what are called first and second charges against your home. In the UK mortgages are referred to as first charges and take precedence for repayment over other second charges should your home be repossessed.
What does securing a loan actually mean. We'll use car finance as an explanation. Most car finance arrangements use a similar security technique, in that you will not actually own your car until all the finance has been repayed. With uk car finance deals, if you fail to repay your loan, it's quite likely that the car will be taken off you, but with loans secured against the value of your home that outcome is very rare. Other avenues will be explored estensively before respossession is considered. Loan companies issue what they call a second charge against the value of your home, becuause your mortgage lender will have the initial charge on your home.
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