Secured Loans For Home Owners
There could be a number of reasons why you are considering secured loans for home owner. We offer a wide selection of loan amounts, repayment terms and loan products from our top lending companies and as a home owner you also have access to the lowest rates on the market.
The reason
for this is that secured loans are granted using the equity in your home as
security or collateral, regardless of whether you own your property outright or
whether it's mortgaged. Secured loans for home owner enjoy lower interest rates
than unsecured loans simply because the lending company is taking on a
relatively low perceived risk with your home backing the loan. The home owner
is taking more of a risk because if they should fall into difficulties and be
unable to pay back the loan, they will eventually lose their home through
repossession. It is very important that you ensure that your monthly budget can
comfortably afford the repayments before committing to a loan agreement
The amount
you wish to borrow will be subject to an interest charge by the lender, and
this is called the Annual Percentage Rate or APR. Lenders advertise typical
interest rates for secured loans for home owner but these are purely an
indication and not a guarantee of the APR you are likely to be offered. The
exact rate you do get is determined on an individual basis and depends on the
term of your loan, the loan amount and the lending company's assessment of your
personal situation and your ability to pay back the loan. The amount of equity
in your home will also be considered. It is also possible to be offered a lower
interest rate from the same lender and the same loan product for an online
application as apposed to a telephonic application. The reason for this that
overhead costs online are lower than other methods of application and the
lender passes this saving on to you. With secured loans for home owner you may
also have the choice of fixed and variable interest rates. Fixed rates mean
that your monthly repayments remain constant throughout the term of the loan
and variable rates mean that your repayments could go up and down from month to
month depending on fluctuations in the bank base rate .
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