These are long-term loans that can be secured against a collateral. Ones assets may be in the form of a home or some other residential property.These are the loans which are easily availed at low interest rates and for long terms of repayment by pledging your property as a security with the creditor. For homeowners these loans come really handy. After assessing ones house equity the lender grants appropriate money.
There is a tremendous scope for the growth of secured loans in the UK. Because the average home price in the UK is about £200,000. Consequently many homeowners take this advantage numerous concessions like low interest rates, flexible interest rates and the loan to value ratio pleasantly rising up to 100 percent.
These loans can be used as per ones convenience like buying another home, debt consolidation, purchasing costly consumer items. Competitive lenders, forming an integral part of the UK finance market, give you enough freedom to use your money as you wish with their sound and secured loan quotations.
Lenders in the UK financial market, through their system of tie-ups, can get you best secured loans at the cheapest rates—decided by the competitively fixed, variable or discounted interest schemes—and leave you free to utilize your new-found resources either for meeting your luxury requirements or for investing in some plan to further ad to capitalistic quotient.
A low credit rating has less effect on such loans as compared to unsecured loans, for the lender is at peace when equipped with the collateral. But one must take care to pay the installments to avoid repossession of the property.