Are secured loans easy to get?
For some people secured loans are easier to obtain and be accepted for a loan when compared to applying for an unsecured personal loan. This is more true for loan applicants who have a poor credit rating/history or low credit score and are deemed to be a higher risk applicant.
Lenders are more likely to borrow to someone who has a bad or adverse credit rating on a secured basis because the borrower is offering collateral (security) against the loan. This means that there is less risk involved to the lender because if the borrower fails to repay what they owe then they can repossess the property to repay the loan. The lender understands that no borrower would wish to lose their home and therefore they have a greater incentive to repay the loan, and are less likely to default on their repayments.
It is important that the applicant understands that if they do not pay what they owe or if they fall behind with their loan payments then they are at a real risk of losing their home to the lender to repossess.
For people who have been refused an unsecured loan
Secured loans do however offer a lifeline for those who have been refused for an unsecured loan elsewhere. Secured loans can be used to consolidate more expensive debts and can be used to help repair or build up a bad credit score when used correctly and repayments are made on time.
Am I eligiable for a secured loan?
If you are looking to a secured loan then the best way to see if you can apply is to speak to one of our broker experts. They will quickly be able to assess your eligability for a loan and be able to get you a decision within minutes. You application will depend on your home equity, your credit rating and your ability to repay the loan and meet the monthly payments.
Should I get a secured loan?
For many people secured loans offer the chance to get a loan at a lower rate of interest than an unsecured loan. Also, with a secured loan you can borrow more and repay the loan back over a longer period of time when compared to an unsecured loan. With a secured loan there is more risk if you think you may not be able to repay the loan as your home could be repossessed if you fail to meet the terms of the loan.
How hard is it to get secured loan?
We make the process very simple and easy. We make the application to the lender upon your behalf and make sure that all the paper work is completed correctly and that the lender has everything they need for your application. Our brokers will guide you through the process step-by-step and are on hand to answer any questions along the way.
More affordable rates for those with poor credit rating
If you have a poor credit rating then you will find that you can obtain more favorable and lower rates of interest with secured loans when compared to an unsecured loan. A secured loan limits the risk to the lender and therefore can offer more attractive rates and deals.
To get a secured loan you need to be 21 or over and own your own home. There needs to be enough equity within the property to act as security and you need to be able to demonstrate then you can afford the repayments of the loan.